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Reflecting the importance of inequality for individuals’ lives, the implications of labor market inequality for core elements of democracy are crucial topics in comparative politics and comparative political economy. This article critically reviews the main findings of the emerging literature on insider–outsider divides to highlight its possible contributions to adjacent fields, in particular the research on party politics, the literatures on economic voting, political participation, and democratic representation or the study of social movements. The conflict between labor market insiders and outsiders demonstrates that in today’s societies with their diversified risk structure and sophisticated welfare states, distributive conflicts are about specific social and regulatory policies that have different implications for individuals depending on their situation on the labor market. By drawing our attention to new divides within the social democratic electorate, the insider–outsider literature reveals an additional argument why the social democratic parties find it hard to mobilize their voters and to win elections. Moreover, the insider–outsider literature can help to bring the economic dimension of politics back to the study of social movements and to light on the relationship between contentious and conventional politics.

Labor Market Dualization and Insider–Outsider Divides: Why This New Conflict Matters