Atypical Employment in Germany

Dr. Hartmut Seifert

Conference : Reconsidering atypical employment

Friedrich Ebert FoundationBudapest, 14.5.2012

2Dr. Hartmut Seifert

Program

• Definition: atypical - precarious• Extend and development• Social risks • Conclusion

Criteria and Forms of Atypical Employment

Standard employment • Full-time• Permanent contract• Integration into social

security system• Identity of work and

employment relationship

Atypical employment • Part-time (less than 35 hrs.)• Fixed-term contract• Marginal employment

(400 €-jobs )• Temp agency work

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Source: SOEP, own calculations

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Atypical employment in Germany 1991-2009, in percentage

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

part-time fixed-term temp agencymarginal employment total atypical

Atypical employment by gender 2000 – 2010, in percentage

Part-time by gender 1991 - 2010, share in percentage

32%35%

38%

45% 46%43%

45% 44%47%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: IAB Panel

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Fixed-term contracts as a proportion of all new contracts, 2001 - 2009

Thesis

The expansion of atypical forms of employment has increased various risks of precariousness, has significantly contributed to the growth of the low wage sector and has intensified the risks of poverty during working-life as well as during retirement.

Women are mainly affected.

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Risks of precariousness

• Short-term problem– low wages

• Medium-term problems- lower degree of employment stability- less access to company based further training

• Long-term problem - higher risk of old-age poverty

Low-wages, share of employees, in percentage

10

Reasons for expansion of non-regular forms

• Deregulation• Persistent high unemployment• Shrinking bargaining power of unions• Short-term oriented cost cutting human

resource strategies• Structural change towards service industries• Increasing participation rate of women• Lack of public child care opportunities

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Conclusion

• Erosion of regular form of employment• Increasing social risks: poverty during working life

and after retirement, particulalrly for women• Increasing risk of shortage of skilled labour• Deepening of segmentation• Introduction of general minimum wage• Risk-premium (precarious working conditions)• General entitlements to further training• Reform of pension system

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