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Social Indicators Research

Erschienen in:

19.08.2015

New Forms of Dualization? Labour Market Segmentation Patterns in the UK from the Late 90s Until the Post-crisis in the Late 2000s

verfasst von: Yeosun Yoon, Heejung Chung

Erschienen in: Social Indicators Research | Ausgabe 2/2016

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Abstract

There has been an increase in literature that examines the patterns of dualization in labour markets across different welfare states. However, rarely do these studies empirically explore how labour markets are divided. Rather they assume a certain type of division to exist in a market, and apply this assumption to measure the extent to which this division can be observed. This paper aims to overcome this limitation by examining the labour market dualization patterns of the UK’s employed population over the past decade through a latent class analysis model. Our analysis shows that the UK labour market could be characterised by a three group system during the period between 1999 and 2010. This divide supports the theoretical literature on labour market divisions in that there are clear distinctions between those who are insiders and those who are not. However, what is interesting is that rather than having a dichotomised pattern of division of insiders and outsiders, we find a third group which can be characterised as a “future insecure” group. What is more, the main characteristics that divide the groups are not contract types (involuntary part-time or temporary employment), but rather income levels (low pay), occupational profile (low-skilled occupations) and social security benefits stemming from employment (occupational pension coverage). From the results, we conclude that the patterns and characteristics of labour market divisions may not be generalised and further empirical investigations are needed to understand the cross-national variations.

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Considering the low level of employment protection in the UK labour market, we also considered including tenure data into the analysis, but it did not lead to meaningful results and thus is excluded from the final model. However, detailed results of this model can be provided upon request.

The detail information about the overall sample size and proportion of active employees is from xjbstat variable in BHPS and x_jbstat variable in Understanding society.

See Table 5 in “Appendix” for categorisation.

Formal specification (equation) of multi-group latent class model is further explained in the “Appendix”.

In addition to the statistic describing the proportion of large two-way marginal residuals, we include other conventional statistics: the likelihood ration Chi squared statistics (L2) and number of degrees of freedom for the model and corresponding bootstrapped p value.

The labour segment with less than 3 % of total sample can be considered as a non-identified segment since it is too small to be representative as a single group especially when comparing the pattern of segment conditional on different time points.

However, the two-way standardised residuals are still greater than 4.

Due to the lack of space, we could not include the results of model fit statistics without involuntary part-time variable. But, all results can be provided upon the request.

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Titel: New Forms of Dualization? Labour Market Segmentation Patterns in the UK from the Late 90s Until the Post-crisis in the Late 2000s
verfasst von: Yeosun Yoon
Heejung Chung
Publikationsdatum: 19.08.2015
Verlag: Springer Netherlands
Erschienen in: Social Indicators Research / Ausgabe 2/2016
Print ISSN: 0303-8300
Elektronische ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-015-1046-y

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