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Churning and institutions : Dutch and German establishments compared with micro-level data

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Author Info

  • Alda, Holger

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Allaart, Piet
  • Bellmann, Lutz

    ()
    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

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    Abstract

    "Often the high level of unemployment in Germany is explained by a lack of flexibility, over-regulation in the labour market and disincentives of the social security system. However, these institutional effects are difficult to test by means of data from only one country. Cross-country comparisons are hindered by the availability of comparable datasets, especially at the establishment level. The comparative analysis of labour markets with different degrees of flexibility, regulation, and social security systems will show the importance of these institutions for the mobility of individuals. In this paper we will estimate regressions - almost identically specified - using establishment datasets from Germany and the Netherlands. We do not only analyse the process of hiring and firing, but also the extent to which they occur simultaneously. Churning can be regarded as the part of hiring which occurs above the level of replacement of separations. Our results show that German establishments have significantly lower churning rates than their Dutch counterparts. To some extent this can be explained by a different economic situation and a different age-structure of the working population. Important labour market institutions exerting some influence on churning appear to be: the share of fixed term contracts in total employment (higher in the Netherlands), the German apprenticeship system, and the German works councils." (Author's abstract, IAB-Doku) ((en))

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    Bibliographic Info

    Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200512.

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    Length: 35 pages
    Date of creation: 23 May 2005
    Date of revision:
    Handle: RePEc:iab:iabdpa:200512

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    Keywords: IAB-Betriebspanel; Arbeitskräftenachfrage; institutionelle Faktoren; Arbeitskräftemobilität; Personaleinstellung; Entlassungen; Personalplanung; befristeter Arbeitsvertrag; Berufsbildungssystem; Gewerkschaft; Altersstruktur; Erwerbsbevölkerung; Arbeitsmarktstruktur - internationaler Vergleich; Bundesrepublik Deutschland; Niederlande;

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    References

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    1. Burgess, Simon & Lane, Julia & Stevens, David, 2001. "Churning dynamics: an analysis of hires and separations at the employer level," Labour Economics, Elsevier, Elsevier, vol. 8(1), pages 1-14, January.
    2. Katharine G. Abraham & Susan N. Houseman, 1993. "Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium," NBER Working Papers 4390, National Bureau of Economic Research, Inc.
    3. Addison, John T. & Bellmann, Lutz & Kölling, Arnd, 2002. "Unions, Works Councils and Plant Closings in Germany," IZA Discussion Papers 474, Institute for the Study of Labor (IZA).
    4. Simon Burgess & Julia Lane & David Stevens, 1996. "Job Flows, Worker Flows and Churning," Labor and Demography, EconWPA 9604004, EconWPA.
    5. Lutz Bellmann & Tito Boeri, 1998. "Internal And External Adjustment To New Technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(2-4), pages 325-343.
    6. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The reform of the German works constitution act: a critical assessment," Discussion Papers 16, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    7. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
    8. Richard B. Freeman, 2002. "Institutional differences and economic performance among OECD countries," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20063, London School of Economics and Political Science, LSE Library.
    9. Giuseppe Nicoletti & Stefano Scarpetta & Olivier Boylaud, 2000. "Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation," OECD Economics Department Working Papers 226, OECD Publishing.
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    Cited by:
    1. Ronald Bachmann & Peggy David, 2009. "The Importance of Two-Sided Heterogeneity for the Cyclicality of Labour Market Dynamics," SFB 649 Discussion Papers SFB649DP2009-017, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    2. Romeu Gordo, Laura, 2006. "Compression of morbidity and the labor supply of older people," IAB Discussion Paper 200609, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Hohendanner, Christian, 2007. "Verdrängen Ein-Euro-Jobs sozialversicherungspflichtige Beschäftigung in den Betrieben?," IAB Discussion Paper 200708, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Blien, Uwe & Kirchhof, Kai & Ludewig, Oliver, 2006. "Agglomeration effects on labour demand," IAB Discussion Paper 200628, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Bellmann, Lutz & Gerner, Hans-Dieter & Upward, Richard, 2011. "Job and Worker Turnover in German Establishments," IZA Discussion Papers 6081, Institute for the Study of Labor (IZA).
    6. Eckey, Hans-Friedrich & Schwengler, Barbara & Türck, Matthias, 2007. "Vergleich von deutschen Arbeitsmarktregionen," IAB Discussion Paper 200703, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Kruppe, Thomas, 2006. "Die Förderung beruflicher Weiterbildung : eine mikroökonometrische Evaluation der Ergänzung durch das ESF-BA-Programm," IAB Discussion Paper 200621, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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