EXTERNAL LABOUR MARKET FLEXIBILITY AND SOCIAL INEQUALITY.

In this paper we examine the impact of temporary work on two dimensions of social inequality: income and career mobility. Additionally, we are taking a comparative perspective on this subject by comparing Germany and the UK. To investigate the effects of temporary work we use data from the German Socio-Economic Panel and the British Household Panel Study on non-self-employed respondents. The results show that temporary work does influence the system of social inequality: we found wage penalties and an increased probability of severe negative effects on the working careers of temporarily employed persons in both countries (net of education, age, and a variety of other covariates). Thus we can conclude that temporary employment represents a substantial socio-economic risk for employees. Most importantly, this holds true for both the German and the British case, two quite distinct labour market regimes. [ABSTRACT FROM AUTHOR]