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Preferences for employment protection and the insider-outsider divide

Author

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  • Elvire Guillaud

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 - Université Paris 1 Panthéon-Sorbonne)

  • Paul Marx

    (IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

Abstract

Insider-outsider theory suggests that in dual labour markets two groups have opposing preferences regarding protection against dismissals: insiders defend employment protection, because it increases their rents. Outsiders see it as a mobility barrier and demand deregulation. Similar divides are expected for unemployment benefits: as insiders and outsiders have diverging unemployment risks, they should demand different levels of protection. Although these views are influential in the political economy debate, there is little empirical research on the effect of contract types on social and labour market policy preferences. We use a novel data set collected in the most recent presidential contest in France, which combines detailed information on respondents' employment status with questions measuring attitudes towards dismissal regulation and other labour market policies. Going beyond insider-outsider theory, we argue and show empirically that the effect of membership in either segment is moderated by the employment situation in workers' occupation.

Suggested Citation

  • Elvire Guillaud & Paul Marx, 2014. "Preferences for employment protection and the insider-outsider divide," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00965174, HAL.
    • Handle: RePEc:hal:cesptp:hal-00965174
    DOI: 10.2139/ssrn.2318750
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    References listed on IDEAS

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    Cited by:

    1. Brigitte Granville & Jaume Martorell Cruz, 2016. "Squared Segmentation: How the Insider/Outsider divide across Public/Private Employment shapes attitudes towards markets," Working Papers 78, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    2. Thomas Prosser, 2016. "Dualization or liberalization? Investigating precarious work in eight European countries," Work, Employment & Society, British Sociological Association, vol. 30(6), pages 949-965, December.
    3. Lucas RONCONI & Ravi KANBUR & Santiago LÓPEZ‐CARIBONI, 2023. "Who demands labour (de)regulation in the developing world? Revisiting the insider–outsider theory," International Labour Review, International Labour Organization, vol. 162(2), pages 223-243, June.

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    More about this item

    Keywords

    employment protection; insider-outsider theory; political preferences; France; single employment contract;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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