Not so Standard Anymore? Employment Duality in Germany

34 Pages Posted: 3 May 2014

See all articles by Werner Eichhorst

Werner Eichhorst

Institute for the Study of Labor (IZA)

Verena Tobsch

Helmut-Schmidt-University, Institute for HRM and International Management

Abstract

This paper gives an overview of the transformation of the German labour market since the mid-1990s with a special focus on the changing patterns of labour market segmentation or 'dualization' of employment in Germany. While labour market duality in Germany can partially be attributed to labour market reforms promoting, in particular, non-standard forms of employment and allowing for an expansion of low pay, structural changes in the economy as well as strategic choices by employers and social partners also play a prominent role.Our main argument is that the liberalization of non-standard contracts has contributed to the expansion of overall labour market inclusion and job growth in Germany and that at least some forms of non-standard work provide stepping stones into permanent regular jobs. Atypical contracts do not necessarily undermine the dominance of standard employment relationships and job quality in this primary segment but rather form a supplementary part of employment in sectors that depend on more flexible and maybe cheaper forms of labour.

Keywords: Germany, labour market reforms, dualization, non-standard work

JEL Classification: J21, J31, J42

Suggested Citation

Eichhorst, Werner and Tobsch, Verena, Not so Standard Anymore? Employment Duality in Germany. IZA Discussion Paper No. 8155, Available at SSRN: https://ssrn.com/abstract=2432439 or http://dx.doi.org/10.2139/ssrn.2432439

Werner Eichhorst (Contact Author)

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Verena Tobsch

Helmut-Schmidt-University, Institute for HRM and International Management ( email )

Holstenhofweg 85
Hamburg, 22043
Germany

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