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

Corinne Perraudin, Héloïse Petit, Nadine Thévenot (), Bruno Tinel and Julie Valentin
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Corinne Perraudin: Centre d'Etudes de l'Emploi et Centre d'Economie de la Sorbonne
Nadine Thévenot: Centre d'Economie de la Sorbonne
Bruno Tinel: Centre d'Economie de la Sorbonne
Julie Valentin: Centre d'Economie de la Sorbonne

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

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 (search for similar items in EconPapers)
JEL-codes: J31 J82 L24 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2009-04
New Economics Papers: this item is included in nep-bec
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Published in Review of Radical Political Economics, 2014, 46, (2), pp.199-220

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https://doi.org/10.1177/0486613413497912
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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:mse:cesdoc:09019

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