EMCC European Monitoring Centre on Change

Labour market segmentation refers to a situation where the labour force is divided in two or more segments between which mobility is limited, and where differences in working conditions between individuals persist over time and cannot be attributed exclusively to differences in workers’ productivity. This means that some people enjoy stable and secure careers with better wages and development prospects, while others are trapped in employment relationships characterised by instability, uncertainty and poorer working conditions.

This report proposes a definition of segmentation that looks beyond the type of contract and employment protection legislation as key dimensions of this phenomenon and explores approaches to analyse it from a quantitative and a policy perspective. Focusing on France, Germany, Spain and the United Kingdom, it illustrates why segmentation is problematic for the labour market and society and it identifies different policy approaches which could be helpful in tackling this phenomenon.

• Publication: Labour market segmentation: Piloting new empirical and policy analyses