A Note on Dual Internal Labor Markets and Wages of Temporary Workers: Evidence from Linked-Employer-Employee Data
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In: Journal of Labor Research, Vol. 35, No. 2, 06.2014, p. 133-142.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - A Note on Dual Internal Labor Markets and Wages of Temporary Workers
T2 - Evidence from Linked-Employer-Employee Data
AU - Pfeifer, Christian
PY - 2014/6
Y1 - 2014/6
N2 - 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.
AB - 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.
KW - Economics
KW - Dual labor market
KW - Fixed-term contract
KW - Internal labor market
KW - Linked employer-employee data
KW - Wage differential
UR - http://www.scopus.com/inward/record.url?scp=84901334459&partnerID=8YFLogxK
U2 - 10.1007/s12122-013-9173-1
DO - 10.1007/s12122-013-9173-1
M3 - Journal articles
VL - 35
SP - 133
EP - 142
JO - Journal of Labor Research
JF - Journal of Labor Research
SN - 0195-3613
IS - 2
ER -