Has the Economic Crisis Contributed to More Segmentation in Labour Market and Welfare Outcomes?

Abstract

This paper analyses whether developments on the labour market and in the welfare system during the economic crisis can be seen as perpetuating the trend towards labour market segmentation or whether the crisis may actually have contributed to containing some of the divisions forged in recent decades. The emphasis is placed on (involuntary) part-time and temporary employment. With regard to labour market developments, the author demonstrates a further segmentation during the crisis, in particular for youth and people with low educational levels who have been disproportionately affected by unemployment. Due to data deficiencies, it is difficult to judge conclusively whether the crisis has contributed to more or to less segmentation in welfare coverage. In fact, there seems to be a division between countries in this regard and the deliberate opening up of unemployment schemes in several countries to new groups of workers during the crisis can clearly be seen as a positive trend contrasting with developments over recent decades.