Workforce Segmentation in Germany: From the Founding Era to the Present Time

26 Pages Posted: 22 Nov 2014

See all articles by Werner Eichhorst

Werner Eichhorst

Institute for the Study of Labor (IZA)

Michael Jan Kendzia

IZA Institute of Labor Economics

Abstract

Despite a more recent debate about ever deeper segmentation, we argue that since industrialization, Germany has continually experienced a dual labor market. One segment contains the primary segment of better paid and more attractive jobs, while the secondary segment encompasses rather low paid, less stable and less attractive jobs. It has been argued that this dualization is the result of firms which are likely to hire full-time and long-term workforce for its core activities performed by the core workforce while relying on more flexible forms of employment for other activities. Based on an in-depth examination of the structure of the workforce since the founding of the German state, this paper seeks to explore the factors which account for the origin, evolution and the peculiarities of the country's core workforce. It will be shown that a non-negligible part of the working population has always been subjected to marginalization, but that the dividing line between the two segments has changed over time as has the character of the respective groups.

Keywords: workforce segmentation, industrialization, core workforce, peripheral workforce

JEL Classification: N34, J42

Suggested Citation

Eichhorst, Werner and Kendzia, Michael Jan, Workforce Segmentation in Germany: From the Founding Era to the Present Time. Available at SSRN: https://ssrn.com/abstract=2529357 or http://dx.doi.org/10.2139/ssrn.2529357

Werner Eichhorst (Contact Author)

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

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

Michael Jan Kendzia

IZA Institute of Labor Economics ( email )

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

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