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Workers, Firms, or Institutions: What Determines Job Duration for Male Employees in Germany?

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  • Bernhard Boockmann
  • Susanne Steffes

Abstract

The authors examine job durations of German workers using the Linked Employer-Employee Data of the Institute for Employment Research (LIAB). Results indicate that exit rates are strongly influenced by firm characteristics, such as the existence of works councils and the opportunity for further training. The effects of these characteristics, however, are limited to jobs held by blue-collar workers or by those possessing vocational-educational skills. Changes in coefficients across specifications provide clear evidence for a sorting process whereby workers with expected long job durations are matched to firms offering stable employment and vice versa. An extension of the model to a competing-risks framework shows that both individual-level and firm-level characteristics differ greatly in their effects on worker job exits to unemployment and to new jobs. Evidence suggests that works councils decrease exits to both states, but only for blue-collar workers.

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Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 64 (2010)
Issue (Month): 1 (October)
Pages: 109-127

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Handle: RePEc:ilr:articl:v:64:y:2010:i:1:p:109-127

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References

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Citations

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Cited by:
  1. Arnold, Daniel & Brändle, Tobias & Goerke, Laszlo, 2013. "Sickness Absence, Works Councils, and Personnel Problems. Evidence from German Individual and Linked Employer-Employee Data," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79906, Verein für Socialpolitik / German Economic Association.
  2. Ronald Bachmann & Daniel Baumgarten & Joel Stiebale, 2011. "Cross-border Investment, Heterogeneous Workers, and Employment Security – Evidence from Germany," Ruhr Economic Papers 0268, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Hirsch, Boris & Schank, Thorsten & Schnabel, Claus, 2009. "Works Councils and Separations: Voice, Monopoly, and Insurance Effects," IZA Discussion Papers 4126, Institute for the Study of Labor (IZA).
  4. Rothe, Thomas & Giannelli, Gianna C. & Jaenichen, Ursula, 2013. "Doing well in reforming the labour market? Recent trends in job stability and wages in Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79932, Verein für Socialpolitik / German Economic Association.
  5. Boockmann, Bernhard & Hagen, Tobias, 2008. "Fixed-term contracts as sorting mechanisms: Evidence from job durations in West Germany," Labour Economics, Elsevier, vol. 15(5), pages 984-1005, October.
  6. Bohachova, Olga & Boockmann, Bernhard & Buch, Claudia M., 2011. "Labor Demand During the Crisis: What Happened in Germany?," IZA Discussion Papers 6074, Institute for the Study of Labor (IZA).
  7. Goerke, Laszlo & Pannenberg, Markus, 2011. "Trade union membership and dismissals," Labour Economics, Elsevier, vol. 18(6), pages 810-821.
  8. Boockmann, Bernhard & Fries, Jan & Göbel, Christian, 2012. "Specific measures for older employees and late career employment," ZEW Discussion Papers 12-059, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  9. Harald Pfeifer, 2014. "Absenteeism in Apprenticeships: What Role Do Works Councils Play?," Economics of Education Working Paper Series 0098, University of Zurich, Institute for Strategy and Business Economics (ISU).
  10. Thomas Cornelißen & Olaf Hübler, 2011. "Unobserved Individual and Firm Heterogeneity in Wage and Job‐Duration Functions: Evidence from German Linked Employer–Employee Data," German Economic Review, Verein für Socialpolitik, vol. 12(4), pages 469-489, November.
  11. Grund, Christian & Schmitt, Andreas, 2013. "Works Councils, Quits and Dismissals in Germany," IZA Discussion Papers 7361, Institute for the Study of Labor (IZA).
  12. Stephan, Gesine, 2010. "Wages, employment and tenure of temporarily subsidized workers: Does the industry matter? (Löhne, Beschäftigung und Betriebszugehörigkeitsdauer von zeitweise subventionierten Arbeitnehmern: Spielt ," IAB Discussion Paper 201012, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  13. Tobias Brändle, 2013. "Flexible Collective Bargaining Agreements: Still a Moderating Effect on Works Council Behaviour?," IAW Discussion Papers 96, Institut für Angewandte Wirtschaftsforschung (IAW).
  14. Stephan, Gesine, 2010. "Wages, Employment and Tenure of Temporarily Subsidized Workers: Does the Industry Matter?," IZA Discussion Papers 5078, Institute for the Study of Labor (IZA).

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