Chapter 5: Towards a dual labour market
The Impact on Labour Markets and Welfare States
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For a long time there has been discussion on insiders versus outsiders in labour markets, e.g. about the possible impact of insiders’ demands for higher wages preventing outsiders from entering the labour market. Even though the labour market seems to be moving towards a dual labour market, this is presumably less so in the historical sense of insiders versus outsiders but more in line with the disappearance of jobs in the middle of the labour market, while some low-skilled jobs will remain although also highly threatened by the use of new technology. Furthermore, those left behind will run the risk of becoming working poor. In the area of high-skilled labour there will also be a reduction in the number of jobs. In the middle of the job ladder there might still be caring jobs – e.g. especially looking after children in day care where use of robots is less likely to reduce the number of jobs. In other service areas use of technology will also imply a reduction in the number of jobs. This chapter will outline possible changes based on an analysis of changes in job structure within selected European countries from within different welfare state regimes.

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