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Inter-firm Dependency and Employment Inequalities

Author

Listed:
  • Corinne Perraudin

    (CES, Université Paris 1 Panthéon Sorbonne, Paris, France)

  • Héloïse Petit

    (CES, Université Paris 1 Panthéon Sorbonne, Paris, France)

  • Nadine Thèvenot

    (CES, Université Paris 1 Panthéon Sorbonne, Paris, France)

  • Bruno Tinel

    (CES, Université Paris 1 Panthéon Sorbonne, Paris, France)

  • Julie Valentin

    (CES, Université Paris 1 Panthéon Sorbonne, Paris, France)

Abstract

This article highlights the importance of power relations in subcontracting relationships and analyzes their impact on firms’ employment management practices. We show that the use of subcontracting creates a chain of inter-firm economic dependency because it leads the principal contractor to plan and control the activities of the subcontractors. The hypothesis is that this chain of dependency influences both the skill structure and wage levels. Empirical tests carried out on French data confirm that firms that subcontract outsource execution tasks and that the hierarchy of firms impacts employees’ wage levels.

Suggested Citation

  • Corinne Perraudin & Héloïse Petit & Nadine Thèvenot & Bruno Tinel & Julie Valentin, 2014. "Inter-firm Dependency and Employment Inequalities," Review of Radical Political Economics, Union for Radical Political Economics, vol. 46(2), pages 199-220, June.
    • Handle: RePEc:sae:reorpe:v:46:y:2014:i:2:p:199-220
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    Citations

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    Cited by:

    1. Laurence Lizé, 2021. "Conditions de travail dans la sous-traitance : une enquête auprès de salariés du nettoyage et de la sécurité," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03217182, HAL.
    2. Dick Bryan & Michael Rafferty & Phillip Toner & Sally Wright, 2017. "Financialisation and labour in the Australian commercial construction industry," The Economic and Labour Relations Review, , vol. 28(4), pages 500-518, December.
    3. Laurence Lizé, 2021. "Conditions de travail dans la sous-traitance : une enquête auprès de salariés du nettoyage et de la sécurité," Post-Print hal-03217182, HAL.
    4. Damian Grimshaw & Jo Cartwright & Arjan Keizer & Jill Rubery, 2019. "Market Exposure and the Labour Process: The Contradictory Dynamics in Managing Subcontracted Services Work," Work, Employment & Society, British Sociological Association, vol. 33(1), pages 76-95, February.
    5. Eileen Appelbaum, 2017. "Domestic Outsourcing, Rent Seeking, and Increasing Inequality," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(4), pages 513-528, December.

    More about this item

    Keywords

    subcontracting; skills; wages; power relation;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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