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How stable is labour market dualism? Reforms of employment protection in nine European countries

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  • Werner Eichhorst

    (Institute of Labor Economics (IZA), Germany; Universität Bremen, Germany)

  • Paul Marx

    (Universität Duisburg-Essen, Germany; Institute of Labor Economics (IZA), Germany; University of Southern Denmark, Denmark)

Abstract

Labour market segmentation is at the forefront of national and European policy debates. While the European Commission and the OECD claim to promote what they see as more inclusive policies, academic observers remain sceptical. The dualization literature in particular points to stable equilibria that sustain divisions between labour market insiders and outsiders. In this article, we trace recent reform trajectories in a diverse group of nine European countries marked by a high share of temporary employment: France, Germany, Italy, the Netherlands, Poland, Portugal, Slovenia, Spain and Sweden. Our case studies show that recent reforms of employment regulation involve much more dynamism than one would expect based on the experiences of the two preceding decades, or from dualization or insider–outsider theories. The reform trajectories display rather contradictory approaches, sometimes in close succession.

Suggested Citation

  • Werner Eichhorst & Paul Marx, 2021. "How stable is labour market dualism? Reforms of employment protection in nine European countries," European Journal of Industrial Relations, , vol. 27(1), pages 93-110, March.
  • Handle: RePEc:sae:eurjou:v:27:y:2021:i:1:p:93-110
    DOI: 10.1177/0959680119899199
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    Cited by:

    1. Arestis, Philip & Ferreiro, Jesus & Gomez, Carmen, 2023. "Does employment protection legislation affect employment and unemployment?11We acknowledge the comments of an editor and an associate editor of the journal and three reviewers. Their suggestions and r," Economic Modelling, Elsevier, vol. 126(C).
    2. Iva Tomic, 2020. "Employment protection reforms and labour market outcomes in the aftermath of the recession: Evidence from Croatia," Public Sector Economics, Institute of Public Finance, vol. 44(1), pages 3-39.
    3. Traverso, Silvio & Vatiero, Massimiliano & Zaninotto, Enrico, 2024. "Automation and flexible labor contracts: Firm-level evidence from Italy," GLO Discussion Paper Series 1425, Global Labor Organization (GLO).
    4. Stef Bouwhuis & Dimitris Pavlopoulos & Mauricio Garnier‐Villarreal & Wendy Smits, 2024. "Ad hoc decisions as latent strategies: How do firms use nonstandard employment contracts?," Industrial Relations Journal, Wiley Blackwell, vol. 55(2), pages 81-99, March.
    5. Eichhorst, Werner & Kalleberg, Arne & Portela Souza, André & Visser, Jelle, 2019. "Designing Good Labour Market Institutions: How to Reconcile Flexibility, Productivity and Security?," IZA Discussion Papers 12482, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Employment protection; fixed-term contracts; France; Germany; Italy; labour market dualism; labour market reforms; Poland; Portugal; segmentation; Slovenia; Spain; Sweden; the Netherlands;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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