Data from the German Socio-Economic Panel provide insight into the relationship between standard and non-standard work, from the perspective of dual labour market theory. We identify two segments that largely correspond to the common distinction between these forms of employment and find substantial differences in the determination of wages, as well as the composition of worker and job characteristics. These differences tend to increase after the Hartz reforms. The estimates also indicate the existence of a primary sector wage premium and job rationing, as well as specific patterns of labour mobility due to (partly non-economic) barriers between segments.JEL classification: J31, J42, J62.We employ the concept of the dual labour market, as described by Piore (1971) and Doeringer and Piore (1971), in order to derive three hypotheses pertaining to the considered job types.
M. GarzAccording to Piore (1971) and Doeringer and Piore (1971), mobility barriers between the two segments are caused by three factors. First, in contrast with fully competitive markets, wage premiums and job rationing erect barriers.
M. Garz
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