The number of workers on the border between self-employment and employment strongly increased across Europe over the last decade. This paper investigates whether and in what respect these workers differ from employees and self-employed and analyses whether these work relationships are a stepping stone to more stable employment in the short-run using Italian data. Depending on the data source the "para-subordinates" represent between 1.8% and 5.3% of the Italian labour force. Since most of them work only for one company and are strongly integrated into the firm of the contract partner, we argue that labour and social security l aw discriminates against these workers who are in fact very close to employees. We find that they are not low qualified workers, but young, highly educated professionals. At the same time these contracts are not a port of entry into the labour market nor do we find that they are a vehicle to more stable jobs. However, they are a possibility for women to work part-time.

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The number of workers on the border between self-employment and employment strongly increased across Europe over the last decade. This paper investigates whether and in what respect these workers differ from employees and self-employed and analyses whether these work relationships are a stepping stone to more stable employment in the short-run using Italian data. Depending on the data source the "para-subordinates" represent between 1.8% and 5.3% of the Italian labour force. Since most of them work only for one company and are strongly integrated into the firm of the contract partner, we argue that labour and social security l aw discriminates against these workers who are in fact very close to employees. We find that they are not low qualified workers, but young, highly educated professionals. At the same time these contracts are not a port of entry into the labour market nor do we find that they are a vehicle to more stable jobs. However, they are a possibility for women to work part-time.

The focus of this paper is outsourcing activities, where the contracting worker is formally self-employed but the conditions of work are similar to those of employees. It is argued that the outsourced workers are dependent on or integrated into the firm for which they work. We investigate the mechanisms by which firms mix governance structures and give evidence of how these 'hierarchical' forms of outsourcing create dependency. The key argument of this paper is that firms have established governance structures based on markets, hierarchies and self-enforcing relational contracts so that they are able to keep a substantial amount of control despite sourcing out of labour. Furthermore, we argue that such hierarchical forms of outsourcing produce dependency. Using empirical evidence of the Austrian insurance industry, it is demonstrated that dependency is created, firstly, by the contractual restriction of alternative uses of resources, secondly, by support measures that bind the worker closely to the outsourcing firm, thirdly, by relationship-specific investments made by the worker and, fourthly, by authority elements.

No abstract