scholarly journals The Relationship between the Internal Labour Market and Transitions from Temporary to Permanent Employment in Korea

2014 ◽  
Vol 69 (3) ◽  
pp. 597-620
Author(s):  
Hyondong Kim ◽  
Dong-Jin Lee

Summary Over the past decade, Korean businesses have experienced significant growth in the proportion of temporary employment. In response, the Korean government has enacted the “Temporary Employment Protection Act” to curb the use of temporary employment. With these legislative changes, Korean employers confront choices about whether to encourage transitions from temporary to permanent employment or to utilise outsourcing/contracting services. The purpose of this study is to explore internal labour markets (ILMs) and investigate why companies are willing to transform temporary employment into permanent employment. Furthermore, in the face of market volatility, we consider how companies are willing to increase the number of temporary workers in order to more easily adjust the numbers and types of human resources, rather than constructing and establishing ILMs within a firm. By investigating the interrelated relationships between ILMs, environmental dynamism, and transitions from temporary to permanent employment status, this study elaborates the features of ILMs in making employment decisions. The statistical results of this study show that structural elements of ILMs facilitate transitions from temporary to permanent employment. Among ILMs, only seniority-based pay plans reduce the number of permanent employees transferred from temporary status when companies experience dynamic changes in their environments. Furthermore, ILMs exerted greater influences over employers’ decisions about transitions from temporary to permanent employment a few years after the enactment of changes in temporary labour laws and regulations. This study shows that the features of an employment system determine companies’ decisions about temporary versus permanent employment. ILMs shape and establish organisational norms and cultural traditions that determine employment structures. Furthermore, institutionalised environments also determine whether employers decide to make transitions from temporary to permanent employment. Future studies should pay attention to the features of employment systems as determinants regarding firms’ human capital.

2019 ◽  
Vol 55 (4) ◽  
pp. 689-707
Author(s):  
Björn Högberg ◽  
Mattias Strandh ◽  
Anna Baranowska-Rataj

Temporary work is common across Europe, especially among young people. Whether temporary employment is a transitory stage on the road to standard employment, and whether this varies depending on institutional contexts, is controversial. This article investigates variability in transition rates from temporary to permanent employment across Europe, and how this is related to employment protection legislation (EPL) and the vocational specificity of education systems. We utilize harmonized panel data from the European Union Statistics on Income and Living Conditions, covering 18 European countries and including 34,088 temporary workers aged 18–30. The results show that stricter EPL is associated with lower rates of transitions to permanent employment, while partial deregulation, with strict EPL for permanent contracts but weaker EPL for temporary contracts, is associated with higher transition rates. Vocationally specific education systems have higher transition rates, on average. Moreover, the role of EPL is conditional on the degree of vocational specificity.


ILR Review ◽  
2017 ◽  
Vol 71 (2) ◽  
pp. 525-549 ◽  
Author(s):  
Inmaculada García Mainar ◽  
Colin P. Green ◽  
María Navarro Paniagua

Restrictive employment protection legislation has been highlighted as a key reason for lower labor productivity in Europe compared to the United States. Evidence in the literature has shown robust effects of employment protection on effort, though the effects appear too small to generate marked cross-country differences in labor productivity. The authors revisit this issue using representative data of private-sector workers in Spain. A range of legislative changes aimed at reducing the incidence of temporary employment are used to estimate the effect of permanent employment on one aspect of effort, absenteeism. Results suggest that being employed on a permanent contract increases the probability of being absent from work due to sickness by approximately 5.3 percentage points and the time absent by approximately 0.30 of a day per week. These results suggest that cross-country differences in employment protection have the potential to have a substantial impact on labor productivity.


2021 ◽  
pp. 095001702110314
Author(s):  
Tomas Berglund ◽  
Roy A Nielsen ◽  
Olof Reichenberg ◽  
Jørgen Svalund

This study compares the labour market trajectories of the temporary employed in Norway with those in Sweden. Sweden’s employment protection legislation gap between the strict protection of permanent employment and the loose regulation of temporary employment has widened in recent decades, while Norway has maintained balanced and strict regulation of both employment types. The study asserts that the two countries differ concerning the distribution of trajectories, leading to permanent employment and trajectories that do not create firmer labour market attachment. Using sequence analysis to analyse two-year panels of the labour force survey for 1997–2011, several different trajectories are discerned in the two countries. The bridge trajectories dominate in Norway, while dead-end trajectories are more common in Sweden. Moreover, the bridge trajectories are selected to stronger categories (mid-aged and higher educated) in Sweden than in Norway. The results are discussed from the perspective of labour market dualisation.


2020 ◽  
pp. 10-19
Author(s):  
Olga V. Tsvetkova ◽  

The aim of the study is to develop the concept of “nation-building” as a socio-political project that is adequate to the national ethno-socio-cultural traditions, aimed at improving national security and strengthening the political stability of the entire Russian multinational society in the face of new chal- lenges. The scientific novelty of the research lies in the conceptual generalization of new problems, challenges and risks of constructing the concept of “nation-build- ing”, which require fundamental theoretical understanding within the framework of domestic ethnopolitical science. The article uses an interdisciplinary methodology in the development of the socio-political concept of “nation-building”. The use of socio-cultural analysis made it possible to adapt the concept of “nation-building” to Russian political traditions and values. Comparative political analysis allowed us to compare domestic and foreign approaches to the formation of nation-building. The sys- tematic method revealed the structural elements of the state policy of nation- building in Russia.The result of the research is the proposed socio-political concept, which depends on the role of the state and the challenges of modernity in the Russian ethno-political process and the formation of a civil nation.


2020 ◽  
Vol 42 (1) ◽  
pp. 194-212
Author(s):  
Saverio Minardi

Purpose The purpose of this paper is to investigate the impact of two-tier firm-level collective agreements on firms’ propensity to use temporary employment, accounting for the process of self-selection of firms into different bargaining levels in the Italian context. It further examines which firm-level characteristics drive this process of selection. Design/methodology/approach The empirical analysis uses a panel data set of Italian firms for the years 2005, 2007, 2010 and 2015. Estimations are produced and compared through ordinary least square regression, random-effects and fixed-effects models. Findings Results show that enterprises adopting two-tier firm-level agreements (TTFA) are associated with lower levels of temporary workers. However, a longitudinal analysis suggests that introducing a TTFA does not impact firms’ propensity to employ temporary workers. This novel finding highlights the presence of a selection process based on firm-level time-constant characteristics. The paper argues that these characteristics refer to management orientation toward high-road rather than low-road employment strategies. Further evidence is brought in support of this claim, showing that firms’ propensity toward the provision of training for their labor force partially explain the process of selection. Originality/value The study is the first to analyze the impact of secondary-level collective agreements on firms’ reliance on temporary employment, offering new evidence on the causes of the expansion of temporary employment. It further highlights the relevance of employers’ strategies in shaping the impact of the bargaining structure.


Author(s):  
Nele De Cuyper ◽  
Rita Fontinha ◽  
Hans De Witte

This chapter focuses upon the careers of temporary workers. Temporary employment for many workers presents a route to permanent employment. Other workers, however, get trapped into temporary employment or cycle between unstable jobs and spells of unemployment. Predictors of such transitions are multiple. We selected two broad categories, namely perceived employability from the area of career research and health and well-being from the area of occupational health and well-being research. The overall conclusion is that the association between temporary employment and both perceived employability and health and well-being is inconclusive. This suggests that there are boundary conditions that may make some temporary workers successful and others not. Risk factors include dynamics related to the dual labor market, including lower job quality, lower investments on the part of employers, and negative stereotyping of temporary workers as second-class citizens. On the positive side, many temporary workers have learned to manage their careers in the sense that they invest in training and in continuous job search.


Author(s):  
Jin Lee ◽  
Stacy A. Stoffregen ◽  
Frank B. Giordano

In order to deepen and broaden understanding on the occupational safety and health disparities between temporary and non-temporary workers, psychological and perceptual gaps between the two groups need to be carefully investigated, particularly in relation to risk taking behaviors. To this end, the present study showed the precarious nature of temporary employment in terms of perceived job security and perceived job control. Although the present study showed that risk perception is not significantly different across the temporary and non-temporary worker groups, temporary workers tended to perceive higher monetary benefits from potentially hazardous working opportunities and reported greater willingness to undertake the working opportunities than non-temporary workers. Temporary workers may be more likely to view the working opportunities in hazardous occupational settings as risks that are worthy to take. These findings need to be incorporated in the safety management of temporary workers to promote self-regulatory engagement in safer and healthier behaviors.


Sign in / Sign up

Export Citation Format

Share Document