Inter-firm dependency and employment inequalities: Theoretical hypotheses and empirical tests

Corinne Perraudin (), Héloïse Petit, Nadine Thevenot (), Bruno Tinel () and Julie Valentin ()
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Corinne Perraudin: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé, SAMOS - Statistique Appliquée et MOdélisation Stochastique - UP1 - Université Paris 1 Panthéon-Sorbonne
Nadine Thevenot: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Bruno Tinel: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Julie Valentin: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: This article highlights the importance of power relations in inter-firm relations and analyses their impact on firms' employment management practices. We show, firstly, 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. We then advance the hypothesis 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.

Keywords: Subcontracting; skills; wages; power relation; Sous-traitance; qualifications; salaires; pouvoir; rapport de force (search for similar items in EconPapers)
Date: 2009-01
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00375550
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Published in 2009

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Related works:
Working Paper: Inter-firm dependency and employment inequalities: Theoretical hypotheses and empirical tests (2009)
Working Paper: Inter-firm dependency and employment inequalities: Theoretical hypotheses and empirical tests (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00375550

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