How stable is labour market dualism? Reforms of employment protection in nine European countries

Labour market segmentation is at the forefront of national and European policy debates. While the European Commission and the OECD claim to promote what they see as more inclusive policies, academic observers remain sceptical. The dualization literature in particular points to stable equilibria that sustain divisions between labour market insiders and outsiders. In this article, we trace recent reform trajectories in a diverse group of nine European countries marked by a high share of temporary employment: France, Germany, Italy, the Netherlands, Poland, Portugal, Slovenia, Spain and Sweden. Our case studies show that recent reforms of employment regulation involve much more dynamism than one would expect based on the experiences of the two preceding decades, or from dualization or insider-outsider theories. The reform trajectories display rather contradictory approaches, sometimes in close succession.

Automated summary

Labour market segmentation is a hot topic in national and European policy debates, with the European Commission and OECD advocating for more inclusive policies while academic observers remain skeptical. Despite the stable equilibria between labour market insiders and outsiders pointed out by the dualization literature, recent employment regulation reforms in a diverse group of European countries are showing more dynamism and contradictions than expected based on past experiences or theories.