Labor market dualism and the heterogeneous wage gap for temporary employment : a multilevel study across 30 countries

Faculty/Professorship: Methods of Empirical Social Research  
Author(s): Fauser, Sophia  ; Gebel, Michael  
Title of the Journal: Socio-Economic Review
ISSN: 1475-147X, 1475-1461
Publisher Information: Oxford : Oxford University Press
Year of publication: 2023
Pages: 1-23
Language(s): English
DOI: 10.1093/ser/mwac072
This study investigates the hourly wage gap between 25- and 55-year-old temporary and permanent employees across 30 countries worldwide based on Luxembourg Income Study data from 2000 to 2019 supplemented by other survey data. Two-stage multilevel regressions reveal wage disadvantages for temporary workers, particularly for prime-age workers and those working in medium-/high-level occupations. There is no evidence that a stronger institutional dualization in terms of stronger employment protection for permanent contracts increases the wage gap. Instead partial deregulation matters: In countries where permanent workers are strongly protected, the wage gap is larger if the use of temporary contracts is deregulated. Moreover, results suggest that the larger the size of the temporary employment segment the larger the wage gap. Thus, our findings indicate that stronger institutional and structural labor market dualism amplifies labor market inequality in terms of wage gaps between temporary and permanent workers.
GND Keywords: Arbeitsmarktsegmentierung; Einkommensdisparität; Befristetes Arbeitsverhältnis; Geschichte 2000-2019
Keywords: contracts, flexibility, wages, segmentation, labor market institutions
DDC Classification: 300 Social sciences, sociology & anthropology  
RVK Classification: MS 5000   
Peer Reviewed: Ja
Type: Article
Release Date: 24. January 2023
Project: The socio-economic consequences of temporary employment: A comparative panel data analysis