Labor market dualism and the heterogeneous wage gap for temporary employment: a multilevel study across 30 countries.

This article examines the hourly wage gap between temporary (fixed-term) and permanent employees aged 25 to 55 across 30 countries from 2000 to 2019, using Luxembourg Income Study data supplemented by other surveys. The study finds consistent wage disadvantages for temporary workers, especially among prime-age employees and those in medium- to high-level occupations. It reveals that stronger employment protection legislation (EPL) for permanent workers alone does not increase the wage gap; rather, partial deregulation—characterized by strict EPL for permanent contracts combined with deregulated temporary contracts—amplifies wage disparities. Additionally, a larger share of temporary employment in a country correlates with a wider wage gap. These findings suggest that both institutional and structural labor market dualization contribute to greater wage inequality between temporary and permanent workers, with some variation across age and occupational groups.