2014
DOI: 10.1007/s12122-013-9173-1
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A Note on Dual Internal Labor Markets and Wages of Temporary Workers: Evidence from Linked-Employer-Employee Data

Abstract: I use linked employer-employee data from the German Federal Statistical Office to estimate within-firm wage differentials between temporary workers with fixed-term contracts and workers with permanent contracts in the context of dual internal labor markets. Wage-tenure profiles of permanent workers are estimated separately for each firm to obtain a proxy for the prevalence of internal labor markets. Temporary workers earn significantly lower wages in firms with steeper wage-tenure profiles. This finding is con… Show more

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Cited by 6 publications
(4 citation statements)
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“…The situation in which a company offers different working conditions to different employee groups is labelled in several ways, e.g. HR differentiation (Schmidt et al , 2018), workforce segmentation (Cantrell and Foster, 2007) or the dual internal labour market (Pfeifer, 2014). Despite this variety of labels, the basic idea is always similar – a company distributes its resources (e.g.…”
Section: Theory and Hypothesesmentioning
confidence: 99%
See 1 more Smart Citation
“…The situation in which a company offers different working conditions to different employee groups is labelled in several ways, e.g. HR differentiation (Schmidt et al , 2018), workforce segmentation (Cantrell and Foster, 2007) or the dual internal labour market (Pfeifer, 2014). Despite this variety of labels, the basic idea is always similar – a company distributes its resources (e.g.…”
Section: Theory and Hypothesesmentioning
confidence: 99%
“…It seems that dividing employees into segments should increase cost-effectiveness (McDonnell et al , 2016; Schmidt et al , 2018) and reduce complexity (Cantrell and Foster, 2007). Moreover, peripheral employees may be regarded as a buffer protecting core employees in economic downturns (Kalleberg, 2001; Pfeifer, 2014). However, several authors indicate the lack of consensus about the effects of differentiating HR practices across employee groups (Clinton and Guest, 2013; Marescaux et al , 2013; Schmidt et al , 2018).…”
Section: Introductionmentioning
confidence: 99%
“…Among different forms of atypical work, temporary agency employment (TAE) is reverted to commonly by Germany´s export-oriented manufacturing industries (Pfeifer, 2014). Although agency work still represents a modest share of total employment (2.8% in Germany, around 2.5% in the EU 27 on average among all employees aged 20-65 in 2021) (Eurostat, 2022), it has become a feature of labour market deregulation in many European countries.…”
Section: Introductionmentioning
confidence: 99%
“…ATT (Outcome Annual Post-crisis Job Growth 2012-2014 for Client Firms (in 2012/2009), Logit Estimation, Epanechnikov Kernel Matching.For a list of all variables included in the matching analysis and descriptive statistics for the matched sample see TableA5in the online appendix.…”
mentioning
confidence: 99%