A Note on Dual Internal Labor Markets and Wages of Temporary Workers: Evidence from Linked-Employer-Employee Data

Christian Pfeifer ()

Journal of Labor Research, 2014, vol. 35, issue 2, 133-142

Abstract: I use linked employer-employee data from the German Federal Statistical Office to estimate within-firm wage differentials between temporary workers with fixed-term contracts and workers with permanent contracts in the context of dual internal labor markets. Wage-tenure profiles of permanent workers are estimated separately for each firm to obtain a proxy for the prevalence of internal labor markets. Temporary workers earn significantly lower wages in firms with steeper wage-tenure profiles. This finding is consistent with the segmentation in a primary permanent workforce with high wages and a secondary temporary workforce with low wages, if internal labor markets are more prevalent. Copyright Springer Science+Business Media New York 2014

Keywords: Dual labor market; Fixed-term contract; Internal labor market; Linked employer-employee data; Wage differential; JEL Classification; J31; J41 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s12122-013-9173-1

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