Open Access How Contemporary Labor-Market Institutions Transform Employment Insecurity into Persis-tent Social Inequality

Main Article Content

Authors: Ousmane Diop
Authors: Fatou Fall
DOI: https://doi.org/10.5281/zenodo.22837984

Diop , O., & Fall , F. (2026). How Contemporary Labor-Market Institutions Transform Employment Insecurity into Persis-tent Social Inequality. Perspectives in Labor Economics Journal , 1(1), 64–80. https://doi.org/10.5281/zenodo.22837984

Abstract

This paper examines the relationships between labor-market segmentation, precarious employment and social inequalities by synthesizing recent contributions on the institutional, contractual and social dimensions of contemporary labor markets. The analysis is organized around three complementary perspectives. First, it considers the structural and institutional foundations of segmentation, including insider–outsider divides, temporary employment, career mobility and formal–informal differentiation. Second, it examines the mechanisms and governance of precarious employment, with particular attention to multidimensional employment insecurity, platform work, algorithmic control, regulation and collective representation. Third, it assesses the social inequalities generated and reproduced through segmented labor markets, especially those related to gender, migration, working poverty and health. The literature shows that employment insecurity is not determined solely by contract type, but by the interaction between institutional protection, income stability, bargaining power, working conditions and opportunities for occupational mobility. It also indicates that repeated exposure to insecure employment may generate cumulative disadvantages over the life course. The paper concludes that employment creation alone is insufficient to reduce inequality when jobs remain unstable, poorly protected or inadequately remunerated. More inclusive labor-market outcomes therefore require policies that jointly address employment quality, social protection, collective voice, regulatory coverage and access to stable career trajectories.

Article Details

References

1. Adda, J., Dustmann, C., & Stevens, K. (2017). The career costs of children. Journal of Political Economy, 125(2), 293–337. doi: 10.1086/690952.

2. Ait Hbibi, A., Makhrout, S., Choukar, E., & El Hamidi, N. (2021). Financial inclusion of the in-formal sector through FinTech: What perspective does the Diffusion of Innovation offer? In-ternational Journal of Information Technology and Applied Sciences, 3(4), 184–190. doi: 10.5281/zenodo.11479385.

3. Anwar, M. A., & Graham, M. (2021). Between a rock and a hard place: Freedom, flexibility, precarity and vulnerability in the gig economy in Africa. Competition & Change, 25(2), 237–258. doi: 10.1177/1024529420914473.

4. Ashiagbor, D. (2021). Race and colonialism in the construction of labour markets and precar-ity. Industrial Law Journal, 50(4), 506–531. doi: 10.1093/indlaw/dwab020.

5. Assenova, V. A., & Sorenson, O. (2017). Legitimacy and the benefits of firm formalization. Organization Science, 28(5), 804–818. doi: 10.1287/orsc.2017.1146.

6. Barbieri, P., & Cutuli, G. (2016). Employment protection legislation, labour market dualism, and inequality in Europe. European Sociological Review, 32(4), 501–516. doi: 10.1093/esr/jcv058.

7. Barbieri, P., Cutuli, G., Luijkx, R., Mari, G., & Scherer, S. (2019). Substitution, entrapment, and inefficiency? Cohort inequalities in a two-tier labour market. Socio-Economic Review, 17(2), 409–431. doi: 10.1093/ser/mww035.

8. Benach, J., Vives, A., Tarafa, G., Delclos, C., & Muntaner, C. (2016). What should we know about precarious employment and health in 2025? Framing the agenda for the next decade of research. International Journal of Epidemiology, 45(1), 232–238. doi: 10.1093/ije/dyv342.

9. Biegert, T. (2019). Labor market institutions, the insider/outsider divide and social inequali-ties in employment in affluent countries. Socio-Economic Review, 17(2), 255–281. doi: 10.1093/ser/mwx025.

10. Blau, F. D., & Kahn, L. M. (2017). The gender wage gap: Extent, trends, and explanations. Journal of Economic Literature, 55(3), 789–865. doi: 10.1257/jel.20160995.

11. Bobba, M., Flabbi, L., Levy, S., & Tejada, M. (2021). Labor market search, informality, and on-the-job human capital accumulation. Journal of Econometrics, 223(2), 433–453. doi: 10.1016/j.jeconom.2019.05.026.

12. Bosch, M., & Esteban-Pretel, J. (2015). The labor market effects of introducing unemploy-ment benefits in an economy with high informality. European Economic Review, 75, 1–17. doi: 10.1016/j.euroecorev.2014.10.010.

13. Brülle, J., Gangl, M., Levanon, A., & Saburov, E. (2019). Changing labour market risks in the service economy: Low wages, part-time employment and the trend in working poverty risks in Germany. Journal of European Social Policy, 29(1), 115–129. doi: 10.1177/0958928718779482.

14. Canivet, C., Bodin, T., Emmelin, M., Toivanen, S., Moghaddassi, M., & Östergren, P.-O. (2016). Precarious employment is a risk factor for poor mental health in young individuals in Sweden: A cohort study with multiple follow-ups. BMC Public Health, 16(1), Article 687. doi: 10.1186/s12889-016-3358-5.

15. Carver, L., & Doellgast, V. (2021). Dualism or solidarity? Conditions for union success in regu-lating precarious work. European Journal of Industrial Relations, 27(4), 367–385. doi: 10.1177/0959680120978916.

16. Cini, L., & Goldmann, B. (2021). The worker capabilities approach: Insights from worker mo-bilizations in Italian logistics and food delivery. Work, Employment and Society, 35(5), 948–967. doi: 10.1177/0950017020952670.

17. Cini, L., Maccarrone, V., & Tassinari, A. (2022). With or without U(nions)? Understanding the diversity of gig workers’ organizing practices in Italy and the UK. European Journal of Indus-trial Relations, 28(3), 341–362. doi: 10.1177/09596801211052531.

18. Cukrowska-Torzewska, E., & Matysiak, A. (2020). The motherhood wage penalty: A me-ta-analysis. Social Science Research, 88–89, Article 102416. doi: 10.1016/j.ssresearch.2020.102416.

19. Dias-Abey, M. (2021). Determining the impact of migration on labour markets: The mediating role of legal institutions. Industrial Law Journal, 50(4), 532–557. doi: 10.1093/indlaw/dwab030.

20. Duggan, J., Sherman, U., Carbery, R., & McDonnell, A. (2020). Algorithmic management and app-work in the gig economy: A research agenda for employment relations and HRM. Human Resource Management Journal, 30(1), 114–132. doi: 10.1111/1748-8583.12258.

21. Eberlein, L., Garnier Villarreal, M., & Pavlopoulos, D. (2024). Starting flexible, always flexible? The relation of early temporary employment and young workers’ employment trajectories in the Netherlands. Research in Social Stratification and Mobility, 89, Article 100861. doi: 10.1016/j.rssm.2023.100861.

22. Ed-Dib, M., & El Hamidi, N. (2019). Duality of formal and informal institutions and women’s entrepreneurship in rural areas. Revue du Contrôle, de la Comptabilité et de l’Audit, 3(1), 70–86. Deposit doi: 10.5281/zenodo.14279219.

23. Eichhorst, W., & Tobsch, V. (2015). Not so standard anymore? Employment duality in Ger-many. Journal for Labour Market Research, 48(2), 81–95. doi: 10.1007/s12651-015-0176-7.

24. El Hamidi, N., & Ed-Dib, M. (2020). Economic empowerment of Moroccan women: An analysis using Amartya Sen’s capabilities approach. Revue Internationale du Chercheur, 1(2), 120–136. Deposit doi: 10.5281/zenodo.14279300.

25. El Hamidi, N., Ait Hbibi, A., Makhrout, S., & Choukar, E. (2021). Formalization and institution-al trust: The role of institutional trust in formalizing Morocco’s informal economy. Internation-al Journal of Financial Accountability, Economics, Management, and Auditing, 3(6), 1151–1163. doi: 10.5281/zenodo.11473271.

26. Fauser, S. (2020). Career trajectories and cumulative wages: The case of temporary employ-ment. Research in Social Stratification and Mobility, 69, Article 100529. doi: 10.1016/j.rssm.2020.100529.

27. Fuller, S., & Stecy-Hildebrandt, N. (2015). Career pathways for temporary workers: Exploring heterogeneous mobility dynamics with sequence analysis. Social Science Research, 50, 76–99. doi: 10.1016/j.ssresearch.2014.11.003.

28. Halleröd, B., Ekbrand, H., & Bengtsson, M. (2015). In-work poverty and labour market tra-jectories: Poverty risks among the working population in 22 European countries. Journal of European Social Policy, 25(5), 473–488. doi: 10.1177/0958928715608794.

29. Hardy, T., & McCrystal, S. (2022). The importance of competition and consumer law in regu-lating gig work and beyond. Journal of Industrial Relations, 64(5), 785–800. doi: 10.1177/00221856211068868.

30. Häusermann, S., Kurer, T., & Schwander, H. (2015). High-skilled outsiders? Labor market vulnerability, education and welfare state preferences. Socio-Economic Review, 13(2), 235–258. doi: 10.1093/ser/mwu026.

31. Healy, J., Nicholson, D., & Pekarek, A. (2017). Should we take the gig economy seriously? La-bour & Industry: A Journal of the Social and Economic Relations of Work, 27(3), 232–248. doi: 10.1080/10301763.2017.1377048.

32. Hipp, L., Bernhardt, J., & Allmendinger, J. (2015). Institutions and the prevalence of non-standard employment. Socio-Economic Review, 13(2), 351–377. doi: 10.1093/ser/mwv002.

33. Holtum, P. J., Irannezhad, E., Marston, G., & Mahadevan, R. (2022). Business or pleasure? A comparison of migrant and non-migrant Uber drivers in Australia. Work, Employment and Society, 36(2), 290–309. doi: 10.1177/09500170211034741.

34. Jonsson, J., Matilla-Santander, N., Kreshpaj, B., Johansson, G., Kjellberg, K., Burström, B., Östergren, P.-O., Nilsson, K., Strömdahl, S., Orellana, C., & Bodin, T. (2021). Precarious em-ployment and general, mental and physical health in Stockholm, Sweden: A cross-sectional study. Scandinavian Journal of Public Health, 49(2), 228–236. doi: 10.1177/1403494820956451.

35. Julià, M., Vanroelen, C., Bosmans, K., Van Aerden, K. M., & Benach, J. (2017). Precarious em-ployment and quality of employment in relation to health and well-being in Europe. Interna-tional Journal of Health Services, 47(3), 389–409. doi: 10.1177/0020731417707491.

36. Kleven, H., Landais, C., & Søgaard, J. E. (2019). Children and gender inequality: Evidence from Denmark. American Economic Journal: Applied Economics, 11(4), 181–209. doi: 10.1257/app.20180010.

37. Kreshpaj, B., Orellana, C., Burström, B., Davis, L., Hemmingsson, T., Johansson, G., Kjellberg, K., Jonsson, J., Wegman, D. H., & Bodin, T. (2020). What is precarious employment? A sys-tematic review of definitions and operationalizations from quantitative and qualitative stud-ies. Scandinavian Journal of Work, Environment & Health, 46(3), 235–247. doi: 10.5271/sjweh.3875.

38. Lam, L., & Triandafyllidou, A. (2024). Road to nowhere or to somewhere? Migrant pathways in platform work in Canada. Environment and Planning A: Economy and Space, 56(4), 1150–1169. doi: 10.1177/0308518X221090248.

39. Latner, J. P. (2022). Temporary employment in Europe: Stagnating rates and rising risks. European Societies, 24(4), 383–408. doi: 10.1080/14616696.2022.2072930.

40. Latner, J. P., & Saks, N. (2022). The wage and career consequences of temporary employment in Europe: Analysing the theories and synthesizing the evidence. Journal of European Social Policy, 32(5), 514–530. doi: 10.1177/09589287221106969.

41. Makhrout, S., Choukar, E., El Hamidi, N., & Ait Hbibi, A. (2024). Effectiveness of Moroccan public policies in promoting pro-poor growth. Journal of Economics, Finance and Manage-ment, 3(3), 732–747. doi: 10.5281/zenodo.11475809.

42. Matilla-Santander, N., Jonsson, J., Kreshpaj, B., Orellana, C., Benach, J., Badarin, K., Burström, B., Vives, A., Kjellberg, K., Strömdahl, S., Johansson, G., Östergren, P.-O., & Bodin, T. (2022). The relation between precarious employment arrangements and social precarity: Findings from the PREMIS study in Stockholm, Sweden. International Journal of Health Services, 52(2), 201–211. doi: 10.1177/00207314211051880.

43. Meghir, C., Narita, R., & Robin, J.-M. (2015). Wages and informality in developing countries. American Economic Review, 105(4), 1509–1546. doi: 10.1257/aer.20121110.

44. Mooi-Reci, I., & Dekker, R. (2015). Fixed-term contracts: Short-term blessings or long-term scars? Empirical findings from the Netherlands 1980–2000. British Journal of Industrial Rela-tions, 53(1), 112–135. doi: 10.1111/bjir.12024.

45. Moscone, F., Tosetti, E., & Vittadini, G. (2016). The impact of precarious employment on mental health: The case of Italy. Social Science & Medicine, 158, 86–95. doi: 10.1016/j.socscimed.2016.03.008.

46. Moyce, S. C., & Schenker, M. (2018). Migrant workers and their occupational health and safety. Annual Review of Public Health, 39, 351–365. doi: 10.1146/annurev-publhealth-040617-013714.

47. Prosser, T. (2016). Dualization or liberalization? Investigating precarious work in eight Euro-pean countries. Work, Employment and Society, 30(6), 949–965. doi: 10.1177/0950017015609036.

48. Pulford, A., Thapa, A., Thomson, R. M., Guilding, A., Green, M. J., Leyland, A., Popham, F., & Katikireddi, S. V. (2022). Does persistent precarious employment affect health outcomes among working age adults? A systematic review and meta-analysis. Journal of Epidemiology and Community Health, 76(11), 909–917. doi: 10.1136/jech-2022-219292.

49. Pun, N., Jin, S. H., & Yang, H. C. (2024). Reconceptualising youth poverty through the lens of precarious employment during the pandemic: The case of creative industry. Social Policy and Society, 23(1), 87–102. doi: 10.1017/S1474746421000932.

50. Rönnblad, T., Grönholm, E., Jonsson, J., Koranyi, I., Orellana, C., Kreshpaj, B., Chen, L., Stock-felt, L., & Bodin, T. (2019). Precarious employment and mental health: A systematic review and meta-analysis of longitudinal studies. Scandinavian Journal of Work, Environment & Health, 45(5), 429–443. doi: 10.5271/sjweh.3797.

51. Rosenblat, A., & Stark, L. (2016). Algorithmic labor and information asymmetries: A case study of Uber’s drivers. International Journal of Communication, 10, 3758–3784.

52. Rubery, J., Grimshaw, D., Hebson, G., & Ugarte, S. M. (2015). “It’s all about time”: Time as contested terrain in the management and experience of domiciliary care work in England. Human Resource Management, 54(5), 753–772. doi: 10.1002/hrm.21685.

53. Schwander, H. (2019). Labor market dualization and insider–outsider divides: Why this new conflict matters. Political Studies Review, 17(1), 14–29. doi: 10.1177/1478929918790872.

54. Stewart, A., & Stanford, J. (2017). Regulating work in the gig economy: What are the options? The Economic and Labour Relations Review, 28(3), 420–437. doi: 10.1177/1035304617722461.

55. Tassinari, A., & Maccarrone, V. (2020). Riders on the storm: Workplace solidarity among gig economy couriers in Italy and the UK. Work, Employment and Society, 34(1), 35–54. doi: 10.1177/0950017019862954.

56. Ulyssea, G. (2018). Firms, informality, and development: Theory and evidence from Brazil. American Economic Review, 108(8), 2015–2047. doi: 10.1257/aer.20141745.

57. Umney, C., Stuart, M., Bessa, I., Joyce, S., Neumann, D., & Trappmann, V. (2024). Platform labour unrest in a global perspective: How, where and why do platform workers protest? Work, Employment and Society, 38(1), 3–26. doi: 10.1177/09500170231209676.

58. Vallas, S., & Schor, J. B. (2020). What do platforms do? Understanding the gig economy. An-nual Review of Sociology, 46, 273–294. doi: 10.1146/annurev-soc-121919-054857.

59. Van Aerden, K., Puig-Barrachina, V., Bosmans, K., & Vanroelen, C. (2016). How does em-ployment quality relate to health and job satisfaction in Europe? A typological approach. So-cial Science & Medicine, 158, 132–140. doi: 10.1016/j.socscimed.2016.04.017.

60. van Doorn, N., & Vijay, D. (2024). Gig work as migrant work: The platformization of migration infrastructure. Environment and Planning A: Economy and Space, 56(4), 1129–1149. doi: 10.1177/0308518X211065049.

61. van Doorn, N., Ferrari, F., & Graham, M. (2023). Migration and migrant labour in the gig economy: An intervention. Work, Employment and Society, 37(4), 1099–1111. doi: 10.1177/09500170221096581.

62. Wood, A. J., & Lehdonvirta, V. (2021). Antagonism beyond employment: How the ‘subordi-nated agency’ of labour platforms generates conflict in the remote gig economy. So-cio-Economic Review, 19(4), 1369–1396. doi: 10.1093/ser/mwab016.

63. Wood, A. J., Graham, M., Lehdonvirta, V., & Hjorth, I. (2019). Good gig, bad gig: Autonomy and algorithmic control in the global gig economy. Work, Employment and Society, 33(1), 56–75. doi: 10.1177/0950017018785616.

Similar Articles

You may also start an advanced similarity search for this article.