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Dual Labor Markets at Work

Author

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  • Boris Hirsch

Abstract

Fitting duration models on an inflow sample of jobs in Germany starting in 2002 to 2010, the author investigates the impact of employers’ use of temporary agency work on regular workers’ job stability. In line with dual labor market theory, the author finds that nontemporary jobs are significantly more stable when employers use temporary agency workers. The rise in job stability stems mainly from reduced transitions into nonemployment, suggesting that nontemporary workers are safeguarded against involuntary job losses. The findings are robust to controlling for unobserved permanent employer characteristics and changes in the observational window that comprises the labor market disruption of the Great Recession.

Suggested Citation

  • Boris Hirsch, 2016. "Dual Labor Markets at Work," ILR Review, Cornell University, ILR School, vol. 69(5), pages 1191-1215, October.
    • Handle: RePEc:sae:ilrrev:v:69:y:2016:i:5:p:1191-1215
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    Citations

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    Cited by:

    1. Ramskogler, Paul, 2021. "Labour market hierarchies and the macro-economy – Do labour market dualities affect wage growth in Europe?," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 154-165.
    2. Joshua Haist & Lukáš Novotný, 2023. "Moving across Borders: The Work Life Experiences of Czech Cross‐border Workers during the COVID‐19 Pandemic," Journal of Common Market Studies, Wiley Blackwell, vol. 61(1), pages 124-142, January.
    3. Simon Woodcock, 2022. "The Determinants of Displaced Workers’ Wages: Sorting, Matching, Selection, and the Hartz Reforms," Discussion Papers dp22-04, Department of Economics, Simon Fraser University.
    4. Woodcock, Simon D., 2020. "The Effect of the Hartz Labor Market Reforms on Post-unemployment Wages, Sorting, and Matching," IZA Discussion Papers 13300, Institute of Labor Economics (IZA).
    5. Myounghwan Kim & Giseung Kim, 2023. "Effect of Korean trade union on wage discrimination between regular and irregular workers," Asian Economic Journal, East Asian Economic Association, vol. 37(1), pages 3-24, March.
    6. Donald Tomaskovic-Devey & Silvia Maja Melzer, 2020. "The organizational production of earnings inequalities, Germany 1995–2010," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-22, September.
    7. Baumgarten, Daniel & Kvasnicka, Michael, 2017. "Temporary agency work and the Great Recession," Journal of Economic Behavior & Organization, Elsevier, vol. 136(C), pages 29-44.
    8. Addison, John T. & Teixeira, Paulino & Grunau, Philipp & Bellmann, Lutz, 2018. "Worker Representation and Temporary Employment in Germany: The Deployment and Extent of Fixed-Term Contracts and Temporary Agency Work," IZA Discussion Papers 11378, Institute of Labor Economics (IZA).
    9. Lehner, Lukas & Ramskogler, Paul & Riedl, Aleksandra, 2022. "Begging thy coworker – Labor market dualization and the slow-down of wage growth in Europe," INET Oxford Working Papers 2022-04, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    10. Bas A. S. Koene & François Pichault, 2021. "Embedded Fixers, Pragmatic Experimenters, Dedicated Activists: Evaluating Third‐Party Labour Market Actors’ Initiatives for Skilled Project‐Based Workers in the Gig Economy," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 444-473, June.
    11. Boris Hirsch & Elke J. Jahn & Thomas Zwick, 2020. "Birds, Birds, Birds: Co‐Worker Similarity, Workplace Diversity and Job Switches," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 690-718, September.
    12. Woodcock, Simon D., 2023. "The determinants of displaced workers’ wages: Sorting, matching, selection, and the Hartz reforms," Journal of Econometrics, Elsevier, vol. 233(2), pages 568-595.
    13. Alejandro Micco & Pablo Muñoz-Henríquez, 2018. "The Impact of Extended Employment Protection Laws on the Demand for Temporary Agency Workers," Working Papers wp463, University of Chile, Department of Economics.
    14. Boris Hirsch & Elke J. Jahn & Thomas Zwick, 2019. "Birds, Birds, Birds: Co-worker Similarity, Workplace Diversity, and Voluntary Turnover," Working Paper Series in Economics 387, University of Lüneburg, Institute of Economics.
    15. Elert, Niklas & Henrekson, Magnus, 2021. "Innovative Entrepreneurship as a Collaborative Effort: An Institutional Framework," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 17(4), pages 330-435, June.
    16. Izumi Yokoyama & Kazuhito Higa & Daiji Kawaguchi, 2018. "Adjustments of regular and non-regular workers to exogenous shocks: Evidence from exchange rate fluctuation," Bank of Japan Working Paper Series 18-E-2, Bank of Japan.

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