Since the mid-1990s, income inequality has increased more sharply in Germany than in many other European countries, as the economic basis of middle-class prosperity and security has crumbled. The new minimum wage, an increase in coverage by collective agreements, the re-regulation of atypical...

What are the consequences of the trend towards more flexibilized temporary employment for income inequality? This paper reassesses the crucial assumption behind the politics of dualization that reforms targeted at outsiders do not undermine the position of labor market insiders. Instead, I argue...