New Forms of Dualization? Labour Market Segmentation Patterns in the UK from the Late 90s Until the Post-crisis in the Late 2000s
New Forms of Dualization? Labour Market Segmentation Patterns in the UK from the Late 90s Until the Post-crisis in the Late 2000s
Key takeaways
Bibliography: Yoon, Y., Chung, H., 2016. New Forms of Dualization? Labour Market Segmentation Patterns in the UK from the Late 90s Until the Post-crisis in the Late 2000s. Soc Indic Res 128, 609–631. https://doi.org/10.1007/s11205-015-1046-y
Authors:: Yeosun Yoon, Heejung Chung
Collections:: UCL UKHLS Dump
First-page: 609
There has been an increase in literature that examines the patterns of dualization in labour markets across different welfare states. However, rarely do these studies empirically explore how labour markets are divided. Rather they assume a certain type of division to exist in a market, and apply this assumption to measure the extent to which this division can be observed. This paper aims to overcome this limitation by examining the labour market dualization patterns of the UK’s employed population over the past decade through a latent class analysis model. Our analysis shows that the UK labour market could be characterised by a three group system during the period between 1999 and 2010. This divide supports the theoretical literature on labour market divisions in that there are clear distinctions between those who are insiders and those who are not. However, what is interesting is that rather than having a dichotomised pattern of division of insiders and outsiders, we find a third group which can be characterised as a ‘‘future insecure’’ group. What is more, the main characteristics that divide the groups are not contract types (involuntary part-time or temporary employment), but rather income levels (low pay), occupational profile (low-skilled occupations) and social security benefits stemming from employment (occupational pension coverage). From the results, we conclude that the patterns and characteristics of labour market divisions may not be generalised and further empirical investigations are needed to understand the cross-national variations.
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Reading notes
Imported on 2024-06-26 11:25
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- & Our analysis shows that the UK labour market could be characterised by a three group system during the period between 1999 and 2010. This divide supports the theoretical literature on labour market divisions in that there are clear distinctions between those who are insiders and those who are not. However, what is interesting is that rather than having a dichotomised pattern of division of insiders and outsiders, we find a third group which can be characterised as a ‘‘future insecure’’ group. (p. 609)
- & There has been a steep widening of income inequality between workers over the past couple of decades (OECD 2008; Kolev and Saget 2010). We also see a growth in atypical and precarious employments which are often characterised by low-pay, part-time working and contracts of limited duration (Kalleberg 2009; Vallas and Prener 2012). (p. 610)
- & The UK is an interesting case since it is one of the countries where income inequality has risen most over the last two decades within Western Europe (OECD 2011). Much of this rise has been particularly due to the changes in the occupational and employment structure of the UK labour market. The number of low wage workers in the UK has also grown substantially over the last 20 years and has been highlighted as one of the key factors in widening labour divisions (Elias 1997; Bonoli 2007) (p. 611)
- & Thus, compared to other corporatist countries, its labour market regulations are less stringent and bargaining structures are based on company level negotiations rather than at a sectoral or country level (OECD 1999, 2004; Hall and Soskice 2001). Furthermore, in the recent decades, deregulatory employment policies and competitive relations became key elements of UK’s labour market strategies (Deakin and Reed 2000; Bonoli 2007). (p. 614)
- & Such characteristics have major and distinct consequences for its labour market structures as compared to other European countries. The level of involuntary part-time and temporary employments in the UK has been relatively low compared to other European countries (Green 2007; Bradshaw et al. 2010). For example, 6.3 % of employees were in temporary contracts and 12.3 % of part-time employees were involuntary part-time employment in 2012 (OECD 2013). (p. 614)
- & Another core element of the UK labour market is the high levels of income inequality. The UK has been noted as a country that experienced a faster growing level of earning inequality than any other OECD countries since 1975. It has also one of the large gaps between the top and bottom income deciles (OECD 2011). Thus, in comparison, the issue of job instability and income insecurity is particularly acute for those in low-paid and low-skilled jobs (Gregg 1997; Machin 2011). (p. 614)