Labor market segmentation in the Federal Republic of Germany: an empirical study of segmentation theories from a life course perspective

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Abstract
The purpose of this article is to assess, from a life course perspective, the importance of labor market segmentation in the Federal Republic of Germany. Using event history data, we show the interaction of individual characteristics and institutional structures across employment histories. The empirical analysis provides evidence that labor market segmentation structures occupational careers to a large extent. During the life course the structuring and channeling power of labor market segments is so great that even the relatively simple construction of four labor market segments is sufficient to describe the patterning of labor market chances in a satisfactory and theoretically sound fashion. Empirical results also show that internal labor markets have been given an importance in the theoretical discussion of labor markets which in reality is not warranted. Only about 16 per cent of all labor market processes are mediated through the institutional structure of internal markets. The study confirms the central theses of labor market segmentation theories concerning the allocation process.

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