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

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Authors

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.

Original languageEnglish
JournalJournal of Labor Research
Volume35
Issue number2
Pages (from-to)133-142
Number of pages10
ISSN0195-3613
DOIs
Publication statusPublished - 06.2014

    Research areas

  • Economics - Dual labor market, Fixed-term contract, Internal labor market, Linked employer-employee data, Wage differential

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