Labour market segmentation: Piloting new empirical and policy analyses
Published: 2 December 2019
This report sets out to describe what labour market segmentation is and why it is problematic for the labour market and society, as well as disadvantaged groups. It takes a broad view of the term to examine the situation that arises when the divergence in working conditions between different groups of workers is attributable to factors other than differentials in human capital levels. The report explores which policies or instruments are most effective in combating labour market segmentation, taking into account specific situational characteristics. The report offers a novel approach to the study of labour market segmentation that combines a quantitative empirical analysis with a policy analysis.
The executive summary for this publication is available in PDF format.
This section provides information on the data contained in this publication.
Table 1: Salient elements of LMS theories
Table 2: Drivers of LMS
Table 3: Main issues for affected groups
Table 4: Labour market states taken into account for alphabet A
Table 5: Labour market states taken into account for alphabet B (predominant employment profiles)
Table 6: Challenges for the empirical study of LMS
Table 7: Shares of the career trajectory groups in each country (%)
Table 8: Summary of results from the regression analysis
Table 9: Measures analysed by type, country and reasons for selection
Table 10: Case studies on ALMPs
Table 11: Case studies on assisted contracts
Table 12: Case study on self-employment promotion
Table 13: Case studies on minimum wage
Table 14: Case study on VET
Table 15: Case study on family policies
Table A1: Detailed results of the regression analysis
Figure 1: Conceptual framework for LMS
Figure 2: Approaches in LMS studies
Figure 3: Methodological steps of the empirical analysis
Figure 4: Share of labour market states using alphabet A – France, Spain, UK, Germany (%)
Figure 5: Labour market states using alphabet B – pre-crisis period
Figure 6: Labour market states using alphabet B – crisis period
Figure 7: Average year-to-year transition rates between temporary (full-time) and permanent (full-time) employment (%)
Figure 8: Average year-to-year transition rates between permanent (full-time) employment and unemployment (%)
Figure 9: Average year-to-year transition rates between temporary (full-time) and unemployment (%)
Figure 10: Average year-to-year contract type stability rates (%)
Figure 11: Average year-to-year upward transition rates considering contract type, occupational category and pay (%)
Figure 12: Average year-to-year downward transition rates considering contract type, occupational category and pay (%)
Figure 13: Average career stability rates accounting for contract type, occupational category and earnings (%)
Figure 14: Career trajectory groups in France (%)
Figure 15: Career trajectory groups in Germany (%)
Figure 16: Career trajectory groups in Spain (%)
Figure 17: Career trajectory groups in the UK (%)
Figure 18: France – Career group composition, crisis period (2009–2014) (%)
Figure 19: Germany – Career group composition, pre-crisis (2001–2008) and crisis periods (2009–2016) (%)
Figure 20: Spain – Career group composition, pre-crisis (2001–2008) and crisis periods (2009–2016) (%)
Figure 21: UK – Career group composition, pre-crisis (2001–2008) (%)
Figure 22: Career group composition in terms of economic sector for France, Germany and the UK (%)
Figure 23: Annual average earnings across countries by career trajectory group (in €)
Figure 24: Theoretical framework of labour market segmentation
Figure 25: Key developments in EU policies relevant to LMS since 2008
Infographics
Infographics for France, Germany, Spain, the United Kingdom, and an overview of the four countries are available below.
Click on each infographic to download a pdf.
Eurofound recommends citing this publication in the following way.
Eurofound (2019), Labour market segmentation: Piloting new empirical and policy analyses, Publications Office of the European Union, Luxembourg.
