Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments

The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments AbstractScholars argue that the dual path to labour market flexibility protects the privileges of core workers at the expense of employees relegated to a peripheral employment sector. Yet whether core workers indeed benefit from workforce segmentation remains disputed. To scrutinize this question, I study how the wages of core workers with less than college education respond when their employer shifts employment out to subcontractors, using linked employer–employee panel data from Germany. Empirically, I find the effect of subcontracting on average to be either positive or neutral but not negative. The presence and strength of the positive effect depends (i) on whether the type of subcontracting affords core workers with co-determination rights, (ii) on whether core workers are represented by a works council to exercise these rights, and (iii) on whether these rights are exercised in a context that augments the bargaining position of core workers by rendering conflictual labour relations costly to the employer. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Sociological Review Oxford University Press

The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments

Ochsenfeld, Fabian
European Sociological Review , Volume 34 (3) – Jun 1, 2018
Download PDF
15 pages

Loading next page...
 
/lp/ou_press/the-relational-nature-of-employment-dualization-evidence-from-5LRfvbce5G

References (87)

Publisher
Oxford University Press
Copyright
© The Author(s) 2018. Published by Oxford University Press. All rights reserved. For permissions, please e-mail: journals.permissions@oup.com
ISSN
0266-7215
eISSN
1468-2672
DOI
10.1093/esr/jcy013
Publisher site
See Article on Publisher Site

Abstract

AbstractScholars argue that the dual path to labour market flexibility protects the privileges of core workers at the expense of employees relegated to a peripheral employment sector. Yet whether core workers indeed benefit from workforce segmentation remains disputed. To scrutinize this question, I study how the wages of core workers with less than college education respond when their employer shifts employment out to subcontractors, using linked employer–employee panel data from Germany. Empirically, I find the effect of subcontracting on average to be either positive or neutral but not negative. The presence and strength of the positive effect depends (i) on whether the type of subcontracting affords core workers with co-determination rights, (ii) on whether core workers are represented by a works council to exercise these rights, and (iii) on whether these rights are exercised in a context that augments the bargaining position of core workers by rendering conflictual labour relations costly to the employer.

Journal

European Sociological Review – Oxford University Press

Published: Jun 1, 2018

There are no references for this article.