Insiders and outsiders on a European scale

Abstract

There is evidence of an emerging Europe-wide ‘insider–outsider’ divide. In parallel to the patterns of dualization within national industrial relations systems, ‘core’ European countries retain relatively low unemployment and contractual security, while ‘peripheral’ countries are increasingly marked by high levels of unemployment and contractual insecurity. I contend that such a system is in the interests of insiders in core countries. As a consequence of the capacity of bargaining regimes in core countries to achieve superior competitiveness, and the tendency for workers in these countries to be relatively indifferent to austerity, divergent outcomes result within the eurozone. In conclusion, I reflect on implications for dualization theory and EU cohesion.