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Doing Well in Reforming the Labour Market? Recent Trends in Job Stability and Wages in Germany

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Author Info

  • Giannelli, Gianna Claudia

    ()
    (University of Florence)

  • Jaenichen, Ursula

    ()
    (Institute for Employment Research (IAB), Nuremberg)

  • Rothe, Thomas

    ()
    (Institute for Employment Research (IAB), Nuremberg)

Abstract

The German "employment miracle", with a weak decline in employment and low unemployment during the great recession, seems to be a good example for a successful labour market reform. Nevertheless, there are concerns about rising inequality in the labour market. In this paper we analyze the quality of newly started jobs between 1998 and 2010 using a huge administrative data set which allows us to look at job durations and earnings for different groups of workers. We discuss changes in the distributions of job durations and earnings over time, and present microeconometric models controlling for individual, firm and regional characteristics. Our results show a fairly constant level of overall job stability, but decreasing real wages and rising wage dispersion over time.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7580.

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Length: 35 pages
Date of creation: Aug 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7580

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Keywords: labour market reforms; job quality; job duration; real wages; Germany; 1998-2010;

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References

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  1. Regina T. Riphahn & Daniel Schnitzlein, 2011. "Wage Mobility in East and West Germany," Working Papers, Bavarian Graduate Program in Economics (BGPE) 114, Bavarian Graduate Program in Economics (BGPE).
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  13. Eberle, Johanna & Jacobebbinghaus, Peter & Ludsteck, Johannes & Witter, Julia, 2011. "Generation of time-consistent industry codes in the face of classification changes : Simple heuristic based on the Establishment History Panel (BHP)," FDZ Methodenreport, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 201105_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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  17. René Fahr & Uwe Sunde, 2009. "Did the Hartz Reforms Speed-Up the Matching Process? A Macro-Evaluation Using Empirical Matching Functions," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 10, pages 284-316, 08.
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  19. Matthias Dorner & Jörg Heining & Peter Jacobebbinghaus & Stefan Seth, 2010. "The Sample of Integrated Labour Market Biographies," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, Duncker & Humblot, Berlin, vol. 130(4), pages 599-608.
  20. Dorner, Matthias & Heining, Jörg & Jacobebbinghaus, Peter & Seth, Stefan, 2010. "Sample of Integrated Labour Market Biographies (SIAB) 1975-2008," FDZ Datenreport. Documentation on Labour Market Data, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 201001_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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Cited by:
  1. Marx, Ive & Nolan, Brian & Olivera, Javier, 2014. "The Welfare State and Anti-Poverty Policy in Rich Countries," IZA Discussion Papers, Institute for the Study of Labor (IZA) 8154, Institute for the Study of Labor (IZA).

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