Labour Market Dualism and the Heterogeneous Wage Gap for Temporary Employment. A Multilevel Study across 30 Countries

Sophia Fauser () and Michael Gebel ()

No 853, LIS Working papers from LIS Cross-National Data Center in Luxembourg

Abstract: This study investigates the hourly wage gap between 25-55 year old temporary and permanent employees across 30 countries worldwide based on Luxembourg Income Study data from 2000–2019 supplemented by other survey data. Two-stage multilevel regressions reveal wage disadvantages for temporary workers, particularly for prime-age workers and those working in medium/high-level occupations. There is no evidence that a stronger institutional dualization in terms of stronger employment protection for permanent contracts increases the wage gap. Instead partial deregulation matters: In countries where permanent workers are strongly protected the wage gap is larger if the use of temporary contracts is deregulated. Moreover, results suggest that the larger the size of the temporary employment segment the larger the wage gap. Thus, our findings indicate that stronger institutional and structural labour market dualism amplify labour market inequality in terms of wage gaps between temporary and permanent workers.

JEL-codes: J31 J41 J42 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2023-02
New Economics Papers: this item is included in nep-des
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Socio-Economic Review, 2023, https://doi.org/10.1093/ser/mwac072

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Persistent link: https://EconPapers.repec.org/RePEc:lis:liswps:853

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