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A “Two-Tier” Labour Market for Fixed-Term Jobs? Evaluating Evidence from West Germany Using Quantile Regression

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  • Antje Mertens
  • Frances McGinnity

Abstract

Recent discussion of fixed-term contracts tends to ignore the considerable variation in the quality of these jobs and the wages associated with them (e.g. Booth et al., 2002). In this paper the authors develop the concept of a “two-tier” labour market for fixed-term contracts in Germany and test this concept using quantile regression. Using data from the German Socio-Economic Panel (SOEP) they find that those with high-wage fixed-term contracts earn only slightly less than permanent counterparts, those with low-wage temporary jobs earn much less, indicating that Ordinary Least Squares (OLS) regression misses important aspects of the wage structure of fixed-term workers.

Suggested Citation

  • Antje Mertens & Frances McGinnity, 2005. "A “Two-Tier” Labour Market for Fixed-Term Jobs? Evaluating Evidence from West Germany Using Quantile Regression," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(1), pages 75-85.
    • Handle: RePEc:aeq:aeqsjb:v125_y2005_i1_q1_p75-85
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    Citations

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    Cited by:

    1. Boockmann, Bernhard, 2006. "Chancen trotz befristetem Arbeitsvertrag? Die Wirkung befristeter Beschäftigung im individuellen Erwerbsverlauf," Arbeitspapiere 121, Hans-Böckler-Stiftung, Düsseldorf.
    2. Brehmer, Wolfram & Seifert, Hartmut, 2008. "Sind atypische Beschäftigungsverhältnisse prekär? : eine empirische Analyse sozialer Risiken (Are atypical employment relationships precarious? : an empirical analysis of social risks)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(4), pages 501-531.
    3. Christian Pfeifer, 2012. "Fixed-term contracts and wages revisited using linked employer-employee data [Befristete Arbeitsverträge und Entlohnung neu untersucht mit verbundenen Arbeitgeber-Arbeitnehmer-Daten]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(2), pages 171-183, July.
    4. Inga Laß & Mark Wooden, 2019. "The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 453-478, September.
    5. Boockmann, Bernhard & Hagen, Tobias, 2005. "Befristete und andere "atypische" Beschäftigungsverhältnisse: Wird der Arbeitsmarkt funktionsfähiger? (Fixed-term and other "atypical" employment relationship : is the labour marke," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 305-324.
    6. Alessio Tomelleri, 2021. "Temporary jobs and increasing inequality for recent cohorts in Italy," LABOUR, CEIS, vol. 35(4), pages 500-537, December.
    7. Bachmann, Ronald & Bechara, Peggy & Felder, Rahel & Rzepka, Sylvi & Schaffner, Sandra & Tamm, Marcus, 2015. "Risiken atypischer Beschäftigungsformen für die berufliche Entwicklung und Erwerbseinkommen im Lebensverlauf: Endbericht," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 236525, March.
    8. Brehmer, Wolfram & Seifert, Hartmut, 2008. "Sind atypische Beschäftigungsverhältnisse prekär? : eine empirische Analyse sozialer Risiken (Are atypical employment relationships precarious? : an empirical analysis of social risks)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(4), pages 501-531.
    9. Luz Karime Abadía Alvarado, 2014. "The effects of fixed-term contracts on workers in Colombia," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, August.
    10. Christian Pfeifer, 2014. "A Note on Dual Internal Labor Markets and Wages of Temporary Workers: Evidence from Linked-Employer-Employee Data," Journal of Labor Research, Springer, vol. 35(2), pages 133-142, June.
    11. Boockmann, Bernhard & Hagen, Tobias, 2005. "Befristete und andere "atypische" Beschäftigungsverhältnisse: Wird der Arbeitsmarkt funktionsfähiger? (Fixed-term and other "atypical" employment relationship : is the labour marke," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 305-324.
    12. Boockmann, Bernhard & Hagen, Tobias, 2005. "Befristete und andere "atypische" Beschäftigungsverhältnisse: Wird der Arbeitsmarkt funktionsfähiger? (Fixed-term and other "atypical" employment relationship : is the labour marke," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 305-324.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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