The Flexibilization of European Labor Markets: Incidence and Consequences of Atypical Employment

Project Directors Johannes Giesecke Project Staff Prof. Dr. Michael Gebel Landesstiftung Baden-Württemberg-funded 2006 – 2008

Research question/goal:

The project’s aim was to give a comprehensive overview of the incidence as well as the consequences of so called "atypical" or "flexible" employment relationships in European labor markets. At the centre of interest were the three quantitatively most important forms of atypical employment: part-time employment, temporary help agency work and temporary employment. These forms of employment had to be examined with respect to the effects they have on the amount and the structure of social inequality. In order to do so it was planned to use data sets which allow not only having a temporal comparison of the share of atypical employment on the whole volume of employment but also examining the effects atypical jobs have on important indicators of social inequality (as for example earnings and wages or the stability of employment careers). Given the project’s comparative perspective it was possible to take into account the specific effects of different institutional as well as structural conditions of labor markets. This allowed opening up a broader view on the relationship between labor market flexibilization and changes in the system of social inequality.
The first twelve months of the project were particularly needed for getting an overview of the literature and for data preparation. Due to the early end of the project only a few conclusions could be produced, which regard primarily the German labor market.
On the one hand data from the Socio-economic Panel (waves 2001-2005) were used to investigate the effects of temporary employment, part-time employment and temporary help agency work on wages, wage growth, and on the risk of becoming unemployed. The results show negative socio-economic consequences for employees holding fixed-term contracts and for temporary help agency workers. These negative consequences are, as the research results show, also perceived as being negative by most of the employees. However, in some cases there are differences between the subjective estimation of a risk and the actual outcome. For example, temporary help agency workers seem to underestimate the risk of losing their job.
On the other hand, by using Mikrozensus data from 1989-2005 the effect of individual characteristics on the probability of holding a fixed-term contract was investigated. The results show, that especially young persons, low-qualified people as well as workers with general qualification level face an increased risk to hold a fixed-term contract instead of a permanent one. A comparison over time yields the results, that age-related fixed-term-risk have changed, meaning that young people are increasingly employed on fixed-term contracts. The results of this research project have been published in a MZES-Working-Paper, but the paper was also submitted to a scientific journal.
A first internationally comparative study was started, which is based on data of Mikrozensus and the British Labour Force Surveys. The focus of interest was on the risks of holding a fixed-term contract among university graduates in Germany and Britain. The analysis could show that German university graduates are more likely than British graduates to hold a fixed-term contract. Moreover, the results indicate that in both countries the risks of holding a fixed-term contract varies between fields of study. However, in Germany this variation is more pronounced than in Britain. This and the other results of the analysis reflect important institutional differences between both countries (for example in educational system or in labor market). The conclusions of this study were published by the scientific journal International Journal of Comparative Sociology.


Publications

Presentations

  • Gebel, Michael (2009): Does Temporary Employment Help to Reintegrate the Unemployed? Evidence from British and German Panel Data. [ISA RC28 Summer Meeting "Mobility and Inequality: Intergenerational and Life Course Perspectives", Yale University, New Haven, CT, 02/08/2009 - 05/08/2009]. More
  • Gebel, Michael (2009): Early career consequences of temporary employment in Germany and the United Kingdom. [BHPS-2009 Conference, ISER, University of Essex, Colchester, 08/07/2009 - 10/07/2009]. More
  • Gebel, Michael, Johannes Giesecke (2009): Economic uncertainty and fertility: the effects of employment insecurity and unemployment on family formation in East and West Germany. [Workshop "Economic Uncertainty and Family Dynamics", Berlin, 02/07/2009 - 03/07/2009]. More
  • Gebel, Michael, Johannes Giesecke (2009): Labour market flexibility and inequality: the changing skill-based temporary employment and unemployment risks in Europe. [1st European User Conference for EU-LFS and EU-SILC, Mannheim, 04/03/2009 - 05/03/2009]. More
  • Gebel, Michael (2009): Does Temporary Employment Help to Reintegrate the Unemployed Youth? Evidence from British and German Panel Data.. [Conference "Youth Transitions at Risk?" of the European Research Network on Transitions in Youth, Dijon, 15/09/2009 - 18/09/2009]. More
  • Gebel, Michael (2008): Early Career Consequences of Temporary Employment: Evidence from British and German Panel Data. [16th Annual Workshop of the European Research Network on Transitions in Youth, Bamberg, 09/09/2008 - 12/09/2008]. More
  • Gebel, Michael (2008): Early Career Consequences of Temporary Employment: Evidence from British and German Panel Data. [ISA RC28 Summer Meeting "Work, Poverty and Inequality in the 21st Century", Stanford University, Palo Alto, 05/08/2008 - 08/08/2008]. More
  • Gebel, Michael, Johannes Giesecke (2008): Employment Insecurity and the Transition to Parenthood. [8th International GSOEP User Conference, Berlin, 08/07/2008 - 10/07/2008]. More
  • Gebel, Michael (2008): Labor Market Flexibility and Inequality: The Changing Risk Patterns of Temporary Employment in Europe. [ISA-RC02 Midterm Conference "Inequality beyond Globalization: Economic Changes and the Dynamics of Inequality", Neuchâtel, 25/06/2008 - 27/06/2008]. More
  • Gebel, Michael, Johannes Giesecke (2008): Labor Market Flexibility and Inequality: The Changing Risk Patterns of Temporary Employment in Europe. [ISA-RC28 Spring Meeting "Social Stratification and Insiders/Outsiders: Cross-national Comparisons within and between Continents", Florence, 14/05/2008 - 17/05/2008]. More
  • Gebel, Michael, Johannes Giesecke (2007): Atypical Employment in Germany. [EQUALSOC Research Group Meeting "Atypical Employment and Welfare Regimes", Trento, 24/10/2007 - 25/10/2007]. More
  • Gebel, Michael (2007): Educational Expansion and its Heterogeneous Returns for Wage Workers. [Verein für Socialpolitik Jahrestagung 2007 zum Thema "Bildung und Innovation", München, 08/10/2007 - 11/10/2007]. More
  • Gebel, Michael, Johannes Giesecke (2007): Labour Market Flexibility and Inequality: The Changing Risk Patterns of Atypical Employment. Evidences from the German Labour Market. [ECSR and TransEurope Conference on Globalization, Social Inequality and the Life Course, Groningen, 31/08/2007 - 01/09/2007]. More
  • Gebel, Michael (2007): Labour Market Flexibility and Inequality: The Changing Risk Patterns of Atypical Employment. Evidences from the German Labour Market. [Workshop: Wandel durch Globalisierung, Humboldt Universität Berlin, 27/08/2007 - 27/08/2007]. More
  • Gebel, Michael (2007): Fixed-Term Contracts at Labour Market Entry: Individual Risk Patterns and Quality of First Job.. [EQUALSOC Summer School on “Changes in the Institutional Arrangement of EU Societies and their Effects on Inequality and Social Cohesion”, Levico (Trento), 01/07/2007 - 06/07/2007]. More

Reports

  • Gebel, Michael, Friedhelm Pfeiffer (2007): Educational Expansion and its Heterogeneous Returns for Wage Workers.. 13. Berlin, DIW. More

MZES Working Papers

  • Gebel, Michael, Johannes Giesecke (2008): Labour Market Flexibility and Inequality: The Changing Risk Patterns of Temporary Employment in Germany. 112, Mannheim, MZES. More