NDLI: Internal labour markets and the use of temporary contracts: A case study of a company in the German service sector

Content Provider	Springer Nature Link
Author	Oberst, Mathias Schank, Thorsten Schnabel, Claus
Copyright Year	2007
Abstract	Die Auswertung von Personaldaten eines deutschen Unternehmens identifiziert einige Merkmale eines internen Arbeitsmarktes für die Stammbelegschaft von dauerhaft beschäftigten Mitarbeitern. Dazu zählen eine überdurchschnittlich lange und hierarchisch zunehmende Betriebszugehörigkeit sowie eine mit der Hierarchieebene steigende Entlohnung. Im Gegensatz zu einem idealtypischen internen Arbeitsmarkt nehmen jedoch die Lohndifferenziale nicht mit der Hierarchie überproportional zu, und Humankapitalvariablen spielen eine wichtigere Rolle bei der Entlohnung als reine Hierarchievariablen. Neben seiner Stammbelegschaft setzt das Unternehmen in starkem Maße auf eine Randbelegschaft von befristet Beschäftigten und Leiharbeitnehmern. Eine ökonometrische Analyse zeigt, dass die Kosten pro geleisteter Arbeitsstunde bei befristet Beschäftigten um 14 Prozent und bei Leiharbeitnehmern sogar um 29 Prozent unter denen vergleichbarer Stammmitarbeiter liegen. Zusammen mit den Flexibilitätsvorteilen von temporärer Beschäftigung deutet dies darauf hin, dass Unternehmen durch eine gelungene Mischung von Stamm- und Randbelegschaft Kosten- und Wettbewerbsvorteile haben können.The analysis of the personnel data of a German firm finds some characteristics of internal labour markets for the core group of permanent employees. These include above-average and hierarchically rising years of tenure as well as wages that increase with hierarchy levels. In contrast to an ideal internal labour market, however, wage differentials do not rise more than proportionally with hierarchy levels, and human capital variables play a more important role than hierarchy variables in explaining wages. In addition to its core of permanent workers the firm makes strong use of peripheral workers such as fixed-term employees and temporary agency workers. An econometric analysis indicates that the costs per hour effectively worked are 14 per cent lower for fixed-term employees and even 29 per cent lower for temporary agency workers than for permanent employees with similar characteristics. This and the higher flexibility of temporary employment suggest that firms can have cost and competition advantages by employing the right mix of permanent and temporary workers.
Starting Page	1159
Ending Page	1177
Page Count	19
File Format	PDF
ISSN	00442372
Journal	Zeitschrift für Betriebswirtschaft
Volume Number	77
Issue Number	11
e-ISSN	18618928
Language	English
Publisher	Gabler Verlag
Publisher Date	2007-11-01
Publisher Place	Wiesbaden
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Wages, Compensation, and Labor Costs: General Personnel Management; Executives; Executive Compensation Internal labour markets temporary agency workers fixed-term employees Business and Management Operations Management Organization Human Resource Management Accounting/Auditing Business Taxation/Tax Law
Content Type	Text
Resource Type	Article
Subject	Business and International Management Economics and Econometrics

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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