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Is job stability declining in Germany? Evidence from count data models

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  • Rainer Winkelmann
  • Klaus Zimmermann

Abstract

The macro evidence of increased adjustment pressure since the early 1970s suggests that job mobility should have increased. Hence, retrospective and spell data from the German Socio-Economic Panel are combined in order to test the hypothesis that job stability for German workers declined between 1974 and 1994. Using count data regression models in which we control for labour market experience, various demographic factors, and occupation, we find that job stability did not decrease, but if anything increased, between 1974 and 1994. Our finding suggests that labour market inflexibility is an important factor in explaining the European unemployment problem.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324760
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 30 (1998)
Issue (Month): 11 ()
Pages: 1413-1420

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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1413-1420

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References

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  1. Lucie MERKLE & Klaus F. Zimmermann, 1992. "The Demographics of Labour Turnover : A Comparison of Ordinal Probit and Censored Count Data Models," Discussion Papers (REL - Recherches Economiques de Louvain) 1992033, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  3. Winkelmann, Rainer, 1995. "Duration Dependence and Dispersion in Count-Data Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(4), pages 467-74, October.
  4. Winkelmann, Rainer & Zimmermann, Klaus F, 1995. " Recent Developments in Count Data Modelling: Theory and Application," Journal of Economic Surveys, Wiley Blackwell, vol. 9(1), pages 1-24, March.
  5. Katharine G. Abraham & Susan Houseman, 1995. "Earnings Inequality in Germany," NBER Chapters, in: Differences and Changes in Wage Structures, pages 371-404 National Bureau of Economic Research, Inc.
  6. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May.
  7. repec:ese:iserwp:96-12 is not listed on IDEAS
  8. Zimmermann, Klaus F., 1998. "German Job Mobility and Wages," IZA Discussion Papers 4, Institute for the Study of Labor (IZA).
  9. Dove E. Marcofte, 1995. "Declining job stability: What we know and what it means," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(4), pages 590-598.
  10. Booth, Alison L & Francesconi, Marco & Garcia-Serrano, Carlos, 1997. "Job Tenure: Does History Matter?," CEPR Discussion Papers 1531, C.E.P.R. Discussion Papers.
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Citations

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Cited by:
  1. Bergemann, Annette & Mertens, Antje, 2004. "Job Stability Trends, Layoffs and Transitions to Unemployment - An Empirical Analysis for West Germany," CEPR Discussion Papers 4792, C.E.P.R. Discussion Papers.
  2. Caparros, A. & Navarro, M.L., 2005. "Factors Affecting Quits and Layoffs in Spanish Labour Market," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(4).
  3. Miikka Rokkanen & Roope Uusitalo, 2010. "Changes in job stability - evidence from lifetime job histories," Working Papers 14, Government Institute for Economic Research Finland (VATT).
  4. Jiménez-Rodríguez, Rebeca & Russo, Giuseppe, 2007. "Institutional rigidities and employment rigidity on the Italian labour larket," MPRA Paper 5758, University Library of Munich, Germany.
  5. Ronald Bachmann & Michael C. Burda, 2007. "Sectoral Transformation, Turbulence, and Labor Market Dynamics in Germany," Ruhr Economic Papers 0005, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  6. Ernesto Villanueva, 2004. "Compensating wage differentials and voluntary job changes: Evidence from West Germany," Economics Working Papers 738, Department of Economics and Business, Universitat Pompeu Fabra.
  7. Krzysztof Pytka, 2011. "Determinants of Involuntary Job Termination in the Polish Labor Market," Central European Journal of Economic Modelling and Econometrics, CEJEME, vol. 3(1), pages 25-38, March.
  8. Launov, Andrey, 2004. "An Alternative Approach to Testing Dual Labour Market Theory," IZA Discussion Papers 1289, Institute for the Study of Labor (IZA).

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