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Job Stability Trends, Layoffs and Transitions to Unemployment - An Empirical Analysis for West Germany

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  • Bergemann, Annette
  • Mertens, Antje

Abstract

This Paper studies the evolution of job stability in West Germany. Using data from the German Socio-Economic Panel, we first show that the median elapsed tenure declined for men between 1984 and 1999. Second, estimating proportional Cox hazard models with competing risks and controls for stock sampling, we are able to distinguish the reasons for job separation and different transition states. We show that the decline in the stability of men’s jobs can be attributed partly to an increase in layoffs and partly to an increase in transitions to unemployment. These two developments are not significantly related to each other, however. Some evidence is presented that downsizing of large firms might be responsible for part of the decline in job stability.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4792.

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Date of creation: Dec 2004
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Handle: RePEc:cpr:ceprdp:4792

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Keywords: duration analysis; job stability; labour mobility; layoffs;

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References

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Citations

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Cited by:
  1. Goerke, Laszlo & Pannenberg, Markus, 2010. "Trade Union Membership and Dismissals," IZA Discussion Papers 5222, Institute for the Study of Labor (IZA).
  2. Karsten Wasiluk, 2014. "Technology Adoption and Demographic Change," Working Paper Series of the Department of Economics, University of Konstanz 2014-05, Department of Economics, University of Konstanz.
  3. Rokkanen, Miikka & Uusitalo, Roope, 2010. "Changes in Job Stability: Evidence from Lifetime Job Histories," IZA Discussion Papers 4721, Institute for the Study of Labor (IZA).
  4. Boockmann, Bernhard & Hagen, Tobias, 2005. "Fixed-term Contracts as Sorting Mechanisms: Evidence From Job Durations in West Germany," ZEW Discussion Papers 05-85, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Haile, Getinet Astatike, 2009. "The Nature and Extent of Job Separations in Germany: Some New Evidence from SOEP," IZA Discussion Papers 4216, Institute for the Study of Labor (IZA).
  6. Anna Manzoni & Ruud Luijkx & Ruud Muffels, 2011. "Explaining differences in labour market transitions between panel and life-course data in West-Germany," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(2), pages 241-261, February.
  7. Christian Pfeifer, 2007. "The Perceived Fairness of Layoffs in Germany: Participation, Compensation, or Avoidance?," Journal of Business Ethics, Springer, vol. 74(1), pages 25-36, August.

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