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Secondary job holding in Germany

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  • Sabine Klinger
  • Enzo Weber

Abstract

Since 2003, the number and ratio of multiple jobholders has more than doubled, although the German labour market has been experiencing a strong and sustained upswing. This study analyses multiple jobholding from a time series as well as a cross section perspective. We use rich register data and multinomial logit estimations. The microeconometric findings are linked to macroeconomic trends. Workers hold multiple jobs primarily because of earnings´ or hours´ constraints in the main job. Towards the upper end of the earnings distribution, the probability to have another job does not rise again. Thus, we do not find evidence that another job shall enrich the job portfolio as such. Moreover, female workers, migrants, workers in West Germany as well as in service sectors have a higher than average probability of multiple jobholding. However, the individual factors explain the rise of multiple jobholding over time to a very small extent. Hence, we argue that the far-reaching exemption of second marginal jobs from social security contributions and taxes sets wrong incentives.

Suggested Citation

  • Sabine Klinger & Enzo Weber, 2020. "Secondary job holding in Germany," Applied Economics, Taylor & Francis Journals, vol. 52(30), pages 3238-3256, June.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3238-3256
    DOI: 10.1080/00036846.2019.1707767
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    Cited by:

    1. Hlouskova, Jaroslava & Tsigaris, Panagiotis, 2020. "A behavioral economic approach to multiple job holdings with leisure," IHS Working Paper Series 23, Institute for Advanced Studies.
    2. Philipp Lentge, 2022. "Second job holding in Germany – a persistent feature?," Working Paper Series in Economics 416, University of Lüneburg, Institute of Economics.
    3. Merja Kauhanen, 2021. "Multiple job holding in the changing labour market Рevidence from Finland," Working Papers 331, Ty̦n ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    4. Paul Glavin, 2020. "Multiple jobs? The prevalence, intensity and determinants of multiple jobholding in Canada," The Economic and Labour Relations Review, , vol. 31(3), pages 383-402, September.

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