Berlin, 10.11.

2010 Fuzeile 1
Atypical employment in Germany:
Recent trends and social implications
Dr. Sigrid Betzelt
Professor for Sociology of Work and Organizations
BLE / Faculty of Business and Economics
5
th
German-Sino Conference on Public Administration
Berlin, 14-17
th
Oct. 2010
2 Prof. Dr. Sigrid Betzelt
Agenda
Atypical employment in Germany:
Recent trends and social implications
1. The traditional employment model in (Western)
Germany
2. Changed economic, social, and political conditions
3. Outcomes: Recent trends of atypical
employment in Germany
(and in other European countries)
4. Social implications
5. Conclusions: Political responses?
Berlin, 10.11.2010
Berlin, 10.11.2010 3 Prof. Dr. Sigrid Betzelt
1. Traditional employment model in
Western Germany
A brief historical review:
1950s-60s: Specific historical conditions favouring labour
Economic boom period in Western Germany
Labour shortage strengthened trade unions
Welfare state: employment-based social security system
(Bismarckian social insurances)
Establishing a certain form of employment with strong
protection & social security as a standard employment
relationship:
Berlin, 10.11.2010 4 Prof. Dr. Sigrid Betzelt
1. Traditional employment model in
Western Germany
The standard employment relationship:
permanent employment (strong dismissal protection),
based on work contract with one employer
full-time, normally 8 hours/5 days a week
collectively agreed, living wages: breadwinner for family
rule of seniority: upward mobility for senior workers
full social security: full entitlements in public insurances for
old-age, invalidity, unemployment, health care (later: long-
term care)
Berlin, 10.11.2010 5 Prof. Dr. Sigrid Betzelt
1. Traditional employment model in
Western Germany
This standard employment relationship:
is a reference model for employment in Germany:
- characteristics seen as best practice of labour
- social security entitlements preconditioned to this norm
empirical reality: only for large majority of male workers
This form of employment is complemented by a
specific family model: male breadwinner model
clear division of labour: women stay at home and care for
husband and children, husband is breadwinner
women & children are socially secured by social entitlements
of husband (not in their own right)
Berlin, 10.11.2010 6 Prof. Dr. Sigrid Betzelt
2. Changing economic, social and political
conditions
Challenges to the standard employment relationship:
Since mid 1970s:
Economy: Recession, increasing unemployment, weakened
trade unions, firms demand for more flexible labour contracts
and lower labour costs
Society: birth control, expanded higher education, social
movements
individualisation, increased female labour market
participation
Berlin, 10.11.2010 7 Prof. Dr. Sigrid Betzelt
2. Changing economic, social and political
conditions
modernisation of family model: women in part-time
employment
first atypical employment form matches both firms
demand for flexible, low-payed work and greater female
economic independence
But: standard employment still predominating for men
Berlin, 10.11.2010 8 Prof. Dr. Sigrid Betzelt
2. Changing economic, social and political
conditions
Since end 1980s, 1990s:
Economy: more competitive & volatile markets
(globalisation), tertiarisation (new demand for services),
increasing unemployment, firms demand for flexible, low-cost
labour
Politics: collapse of European socialist countries, German
unification, public budget constraints
neoliberal paradigm
deregulation of labour market: lower dismissal
protection, strong support of flexible employment forms
Since 2000s: Lower social protection against unemployment
Berlin, 10.11.2010 9 Prof. Dr. Sigrid Betzelt
3. Recent trends of atypical employment
Outcomes of economic, social and political changes:
Standard employment relationship is eroding:
empirically: decreasing shares of labour force,
though still majority of mid-aged men
but still the reference norm in social security schemes
raising social problems (section 4.)
Berlin, 10.11.2010 10 Prof. Dr. Sigrid Betzelt
3. Recent trends of atypical employment
Source: Statist. Bundesamt 2008; Microcensus; sum smaller than single value because of multiple
employment in atypical forms; part time only defined as atypical if < 20 hrs.
Berlin, 10.11.2010 11 Prof. Dr. Sigrid Betzelt
Different Data Base (German Socio-Economic Panel)
that includes part-time >20h:
37% of all employees atypical
(+12 percentage points since 1997)
marginal employment doubled
temporary agency work tripled
fixed-term employment +46%
3. Recent trends of atypical employment
Berlin, 10.11.2010 12 Prof. Dr. Sigrid Betzelt
Graph 2: Gender distribution of atypical employment 1997-2007
0
5
10
15
20
25
30
35
1997 1999 2001 2003 2005 2007
year
e
m
p
l
o
y
e
e
s

i
n

%
men: part-ti me empl oyees < 20hrs
men: margi nal empl oyees
men: fi xed-term empl oyees
men: temporary work agency empl oyees
women: part-ti me empl oyees < 20hrs
women: margi nal empl oyees
women: fi xed-term empl oyees
women: temporary work agency empl oyees
Atypical work = still mainly womens work,
but men are catching up
Source: Statist. Bundesamt 2008; Microcensus; sum smaller than single value because of multiple
employment in atypical forms;
part time only defined as atypical if < 20 hrs.
Berlin, 10.11.2010 13 Prof. Dr. Sigrid Betzelt
Microcensus Data: 38% women atypical, men 14%
GSOEP (incl. all part-time): 57% women, 17% men
1997 2007: share of men in atypical empl. doubled
Young, migrant, and low-skilled people are more often
employed atypically
Working hours decrease, esp. for women, more
involuntary part-time (lack of full-time jobs)
Atypical work = still mainly womens work,
but men are catching up
Berlin, 10.11.2010 14 Prof. Dr. Sigrid Betzelt
Huge increase in low-wage employment
Federal Republic of Germany, 1995 and 2006 in Percent
Shares of low-wage empl.
within category
Changes in
low-wage
employment
Changes total
employment
1995 2006 1995-2006 1995-2006
Full-time 11.0 14.3 +12.6% -13.5%
Part- time 22.2 23.4 +24.5% +18.0%
Marginal emp. 86.0 91.7 +181.2% +163.8%
Total 15.0 22.2 +43.3% -3.1%
Source: Kalina/Weinkopf, IAQ-Report 2008-01; SOEP
6.5 million employees work for low wages, i.e. less than two-thirds of the
median wage: West 9.61 , Ost 6.81 (gross wages per hour, in 2006)
Berlin, 10.11.2010 15 Prof. Dr. Sigrid Betzelt
Low wage employment: mainly female
More than two-thirds of the low-waged employees are
women (69%):
Low-wage shares across gender and working hours, in percent (2004)
Men Women
Full-time 10.8 21.8
Part-time 15.6 21.9
Marginal emp. 87.4 85.5
Total 12.6 29.6
Source: SOEP 2004, Kalina/Weinkopf, IAT-Report 2006-3
Berlin, 10.11.2010 16 Prof. Dr. Sigrid Betzelt
Low wage sector no "springboard:
80% of men, 90% women remain low-waged after
6 years of employment
Low upward mobility
Source: IAB-KB 8/2008
Berlin, 10.11.2010 17 Prof. Dr. Sigrid Betzelt
Trends in self-employment:
Increasing
single-
person self-
employed
(without
employees)
Berlin, 10.11.2010 18 Prof. Dr. Sigrid Betzelt
Trends in self-employment:
Mostly single-person self-employed (without
employees) due to different push- and pull-factors
More often not lifelong self-employment (transitions out
of and into unemployment or dependent employment)
Very often rather low incomes (also for highly-skilled)
No social security coverage!
Berlin, 10.11.2010
Atypical employment rate in Europe
1998 and 2008
19 Prof. Dr. Sigrid Betzelt
Source: Schmid / Protsch 2009
employees and
single person
self-employed
Berlin, 10.11.2010 20 Prof. Dr. Sigrid Betzelt
4. Social implications (Germany)
Trend towards erosion of standard employment has
problematic social implications, esp. in German
welfare system:
Certain (not all) atypical employment forms entail:
low wages: no living wages, not even for individuals
low opportunities for upward mobility and upgrading
skills
low social security (low or no entitlements to social
insurance)
Berlin, 10.11.2010 21 Prof. Dr. Sigrid Betzelt
4. Social implications
affecting certain groups in such precarious jobs:
women, young people (also men), low-skilled,
migrants (from outside EU)
life-course: more discontinuous employment
careers (periods of unemployment, atypical empl.)
increasing social inequalities (insiders / outsiders)
and poverty risks
increasing fears of insiders (middle class),
due to lowered social protection against
unemployment: threat of downward mobility
Berlin, 10.11.2010 22 Prof. Dr. Sigrid Betzelt
5. Conclusions: Political response?
Erosion of standard employment challenges the social
security system (that still refers to it as a norm)
raising poverty burdening public budgets
social security system has to be re-designed:
Idea of flexicurity
= combine flexible labour market with social security
e.g. include all atypical employment forms in social insurance,
or establish better (tax-based) social security scheme,
improve transitions between different forms of employment,
un- or non-employment (transitional labour markets)
Berlin, 10.11.2010 23 Prof. Dr. Sigrid Betzelt
5. Conclusions: Political response?
Flexicurity idea is in the scientific debate for about
10 years,
on level of European Union also discussed as concept,
but not yet realised in most countries
Impediments: political power structures (employers
power), public budget constraints
Hope for future? Democratic legitimacy of governments
is eroding, but outcomes questionable
Berlin, 10.11.2010 24 Prof. Dr. Sigrid Betzelt
Thank you for your attention!