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Is Job Stability Declining in Germany? Evidences from Count Data Models

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Author Info

  • Winkelmann, Rainer

    ()
    (University of Zurich)

  • Zimmermann, Klaus F.

    ()
    (IZA and University of Bonn)

Abstract

The macro evidence of increased adjustment pressure since the early seventies 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 increase, 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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1.

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Length: 21 pages
Date of creation: Apr 1998
Date of revision:
Publication status: published in: Applied Economics, 1998, 30 (11), 1413-1420; see IZA Reprints 5/99
Handle: RePEc:iza:izadps:dp1

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Keywords: job mobility; count data models; labour market flexibility;

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References

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  1. Robert H. Topel & Michael P. Ward, 1988. "Job Mobility and the Careers of Young Men," NBER Working Papers 2649, National Bureau of Economic Research, Inc.
  2. Booth, Alison L. & Francesconi, Marco & Garcia-Serrano, Carlos, 1996. "Job tenure: does history matter?," ISER Working Paper Series 96-12, Institute for Social and Economic Research.
  3. 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.
  4. 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).
  5. Katharine G. Abraham & Susan N. Houseman, 1993. "Earnings Inequality in Germany," NBER Working Papers 4541, National Bureau of Economic Research, Inc.
  6. Zimmermann, Klaus F., 1998. "German Job Mobility and Wages," IZA Discussion Papers 4, Institute for the Study of Labor (IZA).
  7. 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.
  8. 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.
  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.
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Citations

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Cited by:
  1. Ronald Bachmann & Michael C. Burda, 2010. "Sectoral Transformation, Turbulence and Labor Market Dynamics in Germany," German Economic Review, Verein für Socialpolitik, vol. 11, pages 37-59, 02.
  2. 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.
  3. Launov, Andrey, 2004. "An Alternative Approach to Testing Dual Labour Market Theory," IZA Discussion Papers 1289, Institute for the Study of Labor (IZA).
  4. Miikka Rokkanen & Roope Uusitalo, 2013. "Changes in Job Stability – Evidence from Lifetime Job Histories," Finnish Economic Papers, Finnish Economic Association, vol. 26(2), pages 36-55, Autumn.
  5. 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.
  6. Rebeca Jiménez-Rodríguez & Giuseppe Russo, 2008. "Institutional Rigidities and Employment Rigidity on the Italian Labour Market," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 54(3), pages 217-227.
  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. 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).

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