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Sectoral Transformation, Turbulence and Labor Market Dynamics in Germany

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  • Ronald Bachmann
  • Michael C. Burda

Abstract

This paper analyzes the interaction between structural change and labor market dynamics in West Germany, during a period when industrial employment declined by more than 30% and service sector employment more than doubled. Using transition data on individual workers, we document a marked increase in structural change and turbulence, in particular since 1990. Net employment changes resulted partly from an increase in gross flows, but also from an increase in the net transition 'yield' at any given gross worker turnover. In growing sectors, net structural change was driven by accessions from non-participation rather than unemployment; contracting sectors reduced their net employment primarily via lower accessions from non-participation. German reunification and Eastern enlargement appear to have contributed significantly to this accelerated pace of structural change. Copyright 2009 The Authors. Journal Compilation Verein für Socialpolitik and Blackwell Publishing Ltd. 2009.

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Bibliographic Info

Article provided by Verein für Socialpolitik in its journal German Economic Review.

Volume (Year): 11 (2010)
Issue (Month): (02)
Pages: 37-59

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Handle: RePEc:bla:germec:v:11:y:2010:i::p:37-59

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Cited by:
  1. Álvarez de Toledo, Pablo & Núñez, Fernando & Usabiaga, Carlos, 2014. "An empirical approach on labour segmentation. Applications with individual duration data," Economic Modelling, Elsevier, vol. 36(C), pages 252-267.
  2. Bachmann, Ronald & Burda, Michael C, 2007. "Sectoral Transformation, Turbulence, and Labour Market Dynamics in Germany," CEPR Discussion Papers 6226, C.E.P.R. Discussion Papers.
  3. Michael C. Burda, 2006. "What kind of shock was it? Regional Integration and Structural Change in Germany after Unification," SFB 649 Discussion Papers SFB649DP2006-087, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  4. Ronald Bachmann & Sebastian Braun, 2008. "The Impact of International Outsourcing on Labour Market Dynamics in Germany," SFB 649 Discussion Papers SFB649DP2008-020, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  5. Gina Cristina Dimian & Bogdan Ileanu & Josef Jablonský & Jan Fábry, 2013. "Analysis of European Labour Market in the Crisis Context," Prague Economic Papers, University of Economics, Prague, vol. 2013(1), pages 50-71.
  6. Walter Krämer, 2011. "The cult of statistical significance. What economists should and should not do to make their data talk," Working Paper Series of the German Council for Social and Economic Data 176, German Council for Social and Economic Data (RatSWD).
  7. Stephan Humpert, 2012. "Age and Gender Differences in Job Opportunities," Working Paper Series in Economics 235, University of Lüneburg, Institute of Economics.
  8. Brian Silverstone & Will Bell, 2011. "Gross Labour Market Flows in New Zealand: Some Questions and Answers," Working Papers in Economics 11/15, University of Waikato, Department of Economics.
  9. Sepp, Jüri, 2009. "Industriestruktur als Ursache für Produktivitätsunterschiede in Europa: Das Beispiel Estland," Discussion Papers 1/09, Europa-Kolleg Hamburg, Institute for European Integration.
  10. Carlos Usabiaga & Fernando Núñez & Pablo Álvarez de Toledo, 2013. "Segmentación del mercado de trabajo, clusters, movilidad y duración de desempleo con datos individuales," Economic Working Papers at Centro de Estudios Andaluces E2013/02, Centro de Estudios Andaluces.
  11. Álvarez de Toledo, Pablo & Núñez, Fernando & Usabiaga, Carlos, 2013. "Labour Market Segmentation, Clusters, Mobility and Unemployment Duration with Individual Microdata," MPRA Paper 46003, University Library of Munich, Germany.

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