What explains changes in full-time and part-time employment in Western Germany? : a new method on an old question
Abstract"From 1992 to 2005, part-time employment in Western Germany has grown by 82 percent, whereas full-time employment has shrunk by 14 percent. Behind these general figures there is substantial variation of employment schemes across industries. Beside this, the share of the service industries in gross value added has grown, whereas the importance of manufacturing and construction has decreased considerably. We analyse the extent to which the changes in part-time and full-time employment can be explained by changes in the sectoral composition of the economy or by other factors. Using West German yearly data from 1992-2005, we estimate a regression analogue shiftshare model. It allows us to divide the overall development of employment into the business cycle effect, the sector effect and the employment status effect. Moreover, we control for sectoral gross value added, unit labour costs and working time. As a methodological contribution we extend the shift-share approach into a dynamic panel model. We use a bias-corrected least squares dummy variable (LSDVc) estimator which is appropriate for our data structure. As a second step, we decompose the fixed effects of the LSDVc estimation into parameters for part-time, full-time, and self-employment as well as six sectors. Our results confirm previous deterministic shift-share analyses: Characteristics inherent in full-time or part-time employment dominantly explain changes in employment patterns in Western Germany. The sectoral composition of the economy plays a significant but minor role. The model extensions reveal that much of the status and sector effects in the simple shiftshare analysis can be captured by determinants of labour demand." (Author's abstract, IAB-Doku) ((en))
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200807.
Length: 31 pages
Date of creation: 15 Feb 2008
Date of revision:
Vollzeitarbeit - Determinanten; Teilzeitarbeit - Determinanten; Wirtschaftsstrukturwandel; Shift-Analyse; Arbeitskräftenachfrage; Westdeutschland; Bundesrepublik Deutschland;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-16 (All new papers)
- NEP-EEC-2008-02-16 (European Economics)
- NEP-LAB-2008-02-16 (Labour Economics)
- NEP-MAC-2008-02-16 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giovanni S.F. Bruno, 2004.
"Approximating the Bias of the LSDV Estimator for Dynamic Unbalanced Panel Data Models,"
KITeS Working Papers
159, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2004.
- Bruno, Giovanni S.F., 2005. "Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models," Economics Letters, Elsevier, vol. 87(3), pages 361-366, June.
- Richard Blundell & Steve Bond, 1995.
"Initial conditions and moment restrictions in dynamic panel data models,"
IFS Working Papers
W95/17, Institute for Fiscal Studies.
- Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Bun, Maurice J. G. & Kiviet, Jan F., 2003.
"On the diminishing returns of higher-order terms in asymptotic expansions of bias,"
Elsevier, vol. 79(2), pages 145-152, May.
- Maurice J.G. Bun & Jan F. Kiviet, 2002. "On the Diminishing Returns of Higher-order Terms in Asymptotic Expansions of Bias," Tinbergen Institute Discussion Papers 02-099/4, Tinbergen Institute, revised 24 Oct 2002.
- Blien, Uwe & Wolf, Katja, 2002.
"Regional development of employment in eastern Germany. An analysis with an econometric analogue to shift-share techniques,"
ERSA conference papers
ersa02p263, European Regional Science Association.
- Uwe Blien & Katja Wolf, 2002. "Regional development of employment in eastern Germany: an analysis with an econometric analogue to shift-share techniques," Papers in Regional Science, Springer, vol. 81(3), pages 391-414.
- Rob Euwals & Maurice Hogerbrugge, 2006. "Explaining the Growth of Part-time Employment: Factors of Supply and Demand," LABOUR, CEIS, vol. 20(3), pages 533-557, 09.
- Susan N. Houseman & Katharine G. Abraham, 1993.
"Labor Adjustment Under Different Institutional Structures: A Case Study of Germany and The United States,"
NBER Working Papers
4548, National Bureau of Economic Research, Inc.
- Katharine G. Abraham & Susan N. Houseman, 1995. "Labor Adjustment under Different Institutional Structures: A Case Study of Germany and the United States," Book chapters authored by Upjohn Institute researchers, in: Friedrich Buttler & Wolfgang Franz & Ronald Schettkat & David Soskice (ed.), Institutional Frameworks and Labor Market Performance: Comparative Views on the U.S. and German Economies, pages 285-315 W.E. Upjohn Institute for Employment Research.
- Susan N. Houseman & Katharine G. Abraham, 1994. "Labor Adjustment Under Different Institutional Structures: A Case Study of Germany and the United States," Upjohn Working Papers and Journal Articles 94-26, W.E. Upjohn Institute for Employment Research.
- Kajal Lahiri, 2005. "Analysis of Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1093-1095.
- Bun, Maurice J.G. & Carree, Martin A., 2006. "Bias-corrected estimation in dynamic panel data models with heteroscedasticity," Economics Letters, Elsevier, vol. 92(2), pages 220-227, August.
- Susan N. Houseman, 2000.
"Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey,"
Upjohn Working Papers and Journal Articles
01-67, W.E. Upjohn Institute for Employment Research.
- Susan N. Houseman, 2001. "Why employers use flexible staffing arrangements: Evidence from an establishment survey," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(1), pages 149-170, October.
- D C Knudsen & R Barff, 1991. "Shift - share analysis as a linear model," Environment and Planning A, Pion Ltd, London, vol. 23(3), pages 421-431, March.
- Giovanni S.F. Bruno, 2005. "Monte Carlo analysis for dynamic panel data models," United Kingdom Stata Users' Group Meetings 2005 06, Stata Users Group.
- David M. Drukker, 2003. "Testing for serial correlation in linear panel-data models," Stata Journal, StataCorp LP, vol. 3(2), pages 168-177, June.
- Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie E., 2004. "The Determinants of Part-Time Work in EU Countries: Empirical Investigations with Macro-Panel Data," IZA Discussion Papers 1361, Institute for the Study of Labor (IZA).
- Rice, Patricia G, 1990. "Relative Labour Costs and the Growth of Part-Time Employment in British Manufacturing Industry," Economic Journal, Royal Economic Society, vol. 100(403), pages 1138-46, December.
- Uwe Blien & Anette Haas, 2005. "Service industries and regional development: An analysis for eastern Germany," The Service Industries Journal, Taylor & Francis Journals, vol. 25(8), pages 979-997, December.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
- Friesen, Jane, 1997.
"The Dynamic Demand for Part-Time and Full-Time Labour,"
London School of Economics and Political Science, vol. 64(255), pages 495-507, August.
- Friesen J., 1991. "The Dynamic Demand for Part-time and Full-time Labour," Discussion Papers dp91-14, Department of Economics, Simon Fraser University.
- Wachter, Till von, 2001. "Employment and productivity growth in service and manufacturing sectors in France, Germany and the US," Working Paper Series 0050, European Central Bank.
- Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
- Euwals, Rob & Hogerbrugge, Maurice, 2006. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," CEPR Discussion Papers 5595, C.E.P.R. Discussion Papers.
- Klodt, Henning & Maurer, Rainer & Schimmelpfennig, Axel, 1997. "Tertiarisierung in der deutschen Wirtschaft," Open Access Publications from Kiel Institute for the World Economy 959, Kiel Institute for the World Economy (IfW).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IAB, Geschäftsbereich Dokumentation und Bibliothek).
If references are entirely missing, you can add them using this form.