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

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  • Bergemann, Annette

    ()
    (University of Mannheim)

  • Mertens, Antje

    ()
    (Berlin School of Economics and Law)

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. However, these two developments are not significantly related to each other. 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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1368.

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Length: 54 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1368

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

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References

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Citations

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Cited by:
  1. Miikka Rokkanen & Roope Uusitalo, 2013. "Changes in Job Stability – Evidence from Lifetime Job Histories," Finnish Economic Papers, Finnish Economic Association, Finnish Economic Association, vol. 26(2), pages 36-55, Autumn.
  2. 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, Springer, vol. 45(2), pages 241-261, February.
  3. Laszlo Goerke & Markus Pannenberg, 2010. "Trade Union Membership and Dismissals," SOEPpapers on Multidisciplinary Panel Data Research 324, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Karsten Wasiluk, 2014. "Technology Adoption and Demographic Change," Working Paper Series of the Department of Economics, University of Konstanz, Department of Economics, University of Konstanz 2014-05, Department of Economics, University of Konstanz.
  5. Boockmann, Bernhard & Hagen, Tobias, 2005. "Fixed-term Contracts as Sorting Mechanisms: Evidence From Job Durations in West Germany," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 05-85, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Christian Pfeifer, 2007. "The Perceived Fairness of Layoffs in Germany: Participation, Compensation, or Avoidance?," Journal of Business Ethics, Springer, Springer, vol. 74(1), pages 25-36, August.
  7. 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).

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