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This paper provides an overview of recent research on dual labour markets. Theoretical and empirical contributions on the labour-market effects of dual employment protection legislation are revisited, as well as factors behind its resilience and policies geared towards correcting its negative economic and social consequences. The topics covered include the stepping-stone or dead-end nature of temporary contracts, their effects on employment, unemployment, churn, training, productivity growth, wages, and labour market inflows and outflows. The paper reviews both theoretical advances and relevant policy discussions on a very relevant topic in many European countries, in particular in several that had a very poor employment performance during the recent global economic and financial crisis.

This paper provides an overview of recent research on dual labour markets. Theoretical and empirical contributions on the labour-market effects of dual employment protection legislation are revisited, as well as factors behind its resilience and policies geared towards correcting its negative consequences. The topics covered include the stepping-stone or dead-end nature of temporary contracts, their effects on employment, unemployment, churn, training, productivity growth, wages, and labour market inflows and outflows. The paper reviews both theoretical advances and relevant policy discussions, in particular in several countries that had very poor employment performance during the recent global economic and financial crisis.

Introduction / Peter T. Chinloy and Ernst W. Stromsdorfer -- A comparison of labor market equilibria under different institutional organizations / Nicholas H. Kiefer -- Wage flexibility in the United States and Japan / Masanori Hashimoto and John Raisian -- The impact of international trade shocks on wage adjustments in Canada / Jean-Michel Cousineau -- Japanese redundancy / Kazuo Koike -- The impact of Mexican migration on the United States and Mexican economies and labor markets / Juan Diez-Canedo Ruiz -- Wage and employment adjustments and the efficiency wage hypothesis / Isao Ohashi -- The collective impact of sectoral shocks on aggregate employment fluctuations / Joseph G. Altonji and John C. Ham -- Job security versus income security / G.C. Archibald and Peter T. Chinloy -- Compensating displaced workers / Daniel S. Hamermesh, Joseph J. Cordes and Robert S. Goldfarb

The critique of the neo‐classical theory of the labour market has been growing in strength in recent years. Two main strands can be identified. The American traditions emphasise the role of the production process of firms or industries, either in terms of its task requirements (Doeringer and Piore 1971), or the mode of labour process control (Edwards 1979). The British tradition emphasises the role of trade unions and the character of the industrial relations system (Rubery 1978; Nolan 1983). By looking at one industry — construction — and thereby controlling for production process and industrial relations system, this article suggests that firm type, in interaction with the product market, is also an important factor in generating non competing labour markets.

The paper discusses how the Russian labor market has been evolving over two decades of the transition. It starts with tracing key labor market indicators such as employment, unemployment, labor force participation, working hours, and real wages. Their dynamics indicate that the labor market tends to operate in a non-conventional fashion and far from the patterns expected initially. The authors argue that the current Russian labor market represents a peculiar model that is different from what is observed in the rest of Europe outside of the CIS. Having established this, they look at the institutional foundations that make this unconventional performance possible and proceed with discussing political economy and welfare implications. The findings are compared with the experience of other post-socialist countries.

Obwohl die Entwicklung eines Landes in erster Linie von wirtschaftsstrukturellen Bedingungen abhängt, kann ein besseres Verständnis der Arbeitsmarktmechanismen und -strukturen dazu beitragen, Politikinstrumente und Zielgruppen zu identifizieren; Verbesserungen bei der Arbeitsallokation können vermutlich in einem bestimmten Ausmaß zu einer breiter angelegten Beschäftigungsstrategie verhelfen. In dem Artikel wird zunächst auf die makroökonomischen Komponenten des Arbeitsmarktes - Arbeitslosigkeit und Unterbeschäftigung - eingegangen. In folgenden Kapiteln werden Arbeitsmarktstrukturen, Lohndeterminanten und das Verhältnis von Arbeitsallokation und Armut diskutiert. (IAB)

This paper has been prepared as a part of a broader Ezoneplus project that evaluates European Monetary Union (EMU) and its enlargement to prospective members in central and eastern Europe. The project is financially supported by European Commission (HPSE-CT-2001-00084). It contains the following chapters: I. Regional Input: Labour Markets in Benelux, France and Germany II. Labour Market Flexibility and Migration in the EU Eastward Enlargement Context: The Case of the Baltic States.