Abstract

Professor Karl-Heinz Schmidt of Paderborn University, West Germany, is currently visiting research scholar at Nagoya University, Japan. The structural changes of the labour market in the industrialised economies have become an important topic in labour market research and practical labour market policy. Yet little progress has been made hitherto concerning the market position of different qualities of labour in small enterprises. Referring to West European countries, and especially to West Germany, the paper gives some insight into the functioning of the tripartite labour market and its consequences for employment fluctuations in very small enterprises on the one hand and large firms on the other. The main question is whether small business is marked by labour market segmentation in the same way as has been suggested for large firms by recent developments in labour market theory.

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