Whatever Works

Werner Eichhorst and Paul Marx

in The Age of Dualization

Published in print January 2012 | ISBN: 9780199797899
Published online May 2012 | e-ISBN: 9780199933488 | DOI:

Series: International Policy Exchange Series

Whatever Works

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The chapter compares employment structures in five Continental European welfare states, with a focus on private services. Despite a common trend to overcome institutional employment barriers by creating a more divided labor market, a closer look reveals considerable differences between national patterns of standard and non-standard work. We identify five transformative pathways towards a more flexible and cheaper use of labor in Continental European welfare states: 1. defection from permanent contracts, 2. from full-time employment, 3. from dependent employment, 4. growing wage dispersion, and 5. government-sponsored labor cost reductions. The chapter shows that by relying on one or several of these options, each country developed a distinct solution for the labor cost problem in the service sector, which corresponds to a particular form of dualization.

Keywords: dualization; non-standard employment; service occupations; low pay; germany; france; austria; the netherlands; belgium; continental europe; labor market flexibility; part-time work; fixed-term contracts; agency work; self-employment

Chapter.  10754 words.  Illustrated.

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