In this paper, we break with the previous research in this area of study and present a richer analysis which incorporates both individual and systemic influences. We argue that individuals have to interact with job characteristics (determined by employers and technology) and local labour market conditions which are heavily conditioned by macroeconomic activity. Thus, an individual can have involuntary constraints imposed upon their possible labour market outcomes that contradict the neoclassical dynamics which are driven by the primacy of individual volition and individual characteristics. However, we limit our analysis in this paper to exploring the transition between casual work and non-casual work. The segmented labour market approach characterises disadvantaged workers as transiting between spells of unemployment, spells of casual work, and even spells outside the labour force (hidden unemployed) over the course of their working lives. To fully appraise the stepping stone hypothesis we would need to incorporate all the transitions from and into casual employment.
Labour Underutilisation, Skills Shortages and Social Inclusion: Incorporating the 10th Path to Full Employment Conference and 15th National Conference on Unemployment, Labour Underutilisation, Skills Shortages and Social Inclusion: Incorporating the 10th Path to Full Employment Conference and 15th National Conference on Unemployment: Proceedings (Newcastle, NSW 04-05December, 2008) p. 132-146