Inter-firm dependency and employment inequalities: Theoretical hypotheses and empirical tests on French subcontracting relationships

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
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 subcontracting relationships and analyses their impact on firms' employment management practices. We show 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. The hypothesis is 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 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (12)

Published in Review of Radical Political Economics, 2014, 46 (2), pp.199-220. ⟨10.1177/0486613413497912⟩

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Working Paper: Inter-firm dependency and employment inequalities: Theoretical hypotheses and empirical tests on French subcontracting relationships (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00772536

DOI: 10.1177/0486613413497912

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