Home Social Sciences Seven Facing the ‘dark side’ of deregulation? The politics of two-tier labour markets in Germany and Japan after the global financial crisis
Chapter
Licensed
Unlicensed Requires Authentication

Seven Facing the ‘dark side’ of deregulation? The politics of two-tier labour markets in Germany and Japan after the global financial crisis

  • Steffen Heinrich
View more publications by Policy Press
Social policy review 22
This chapter is in the book Social policy review 22

Abstract

This chapter analyses the nature of the two-tier labour markets of Germany and Japan. It shows that these two ‘coordinated economies’ have both been subject to processes of deregulation of the second, non-regular, tier of the labour market, even while workers in the first, regular, tier have continued to enjoy strong protection. It examines the institutional and political dynamics of labour market reforms in order to try to understand how the crisis might alter them and whether the possibility exists for a re-regulation of the non-regular tier. It evaluates the difficulties of German and Japanese policy makers in attempting to manage the conflicting policy goals of maintaining and supporting first-tier arrangements while also attempting to maintain or increase the labour market flexibility attained by the expansion of the second tier. It also evaluates the significance of the political partisanship for the regulation of the second tier.

Abstract

This chapter analyses the nature of the two-tier labour markets of Germany and Japan. It shows that these two ‘coordinated economies’ have both been subject to processes of deregulation of the second, non-regular, tier of the labour market, even while workers in the first, regular, tier have continued to enjoy strong protection. It examines the institutional and political dynamics of labour market reforms in order to try to understand how the crisis might alter them and whether the possibility exists for a re-regulation of the non-regular tier. It evaluates the difficulties of German and Japanese policy makers in attempting to manage the conflicting policy goals of maintaining and supporting first-tier arrangements while also attempting to maintain or increase the labour market flexibility attained by the expansion of the second tier. It also evaluates the significance of the political partisanship for the regulation of the second tier.

Downloaded on 21.1.2026 from https://www.degruyterbrill.com/document/doi/10.56687/9781847427137-010/html
Scroll to top button