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Does Marginal Employment Substitute Regular Employment? – A Heterogeneous Dynamic Labor Demand Approach for Germany

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  • Lena Jacobi
  • Sandra Schaffner

    ()

Abstract

In Germany we observe a decline in regular employment and an increase in atypical forms of employment. Especially marginal part-time employment which is characterized by lower tax rates and lower social security contributions increased substantially after a reform in 2003 made this type of employment even more attractive to employers. In our paper we estimate the substitutability of regular employment by marginal part-time employment using data on the industry level before and after the reform.We detect high substitution elasticities with respect to three skill categories of regular employment in both time periods. The substitutability of unskilled full-time workers increased significantly after the reform.

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File URL: http://repec.rwi-essen.de/files/REP_08_056.pdf
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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0056.

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Length: 38 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:rwi:repape:0056

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Related research

Keywords: Mini-Jobs; dynamic labor demand; elasticities; Hartz-reforms;

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References

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  1. John T. Addison & Lutz Bellmann & Thorsten Schank & Paulino Teixeira, 2005. "The Demand for Labor: An Analysis Using Matched Employer-Employee Data from the German LIAB. Will the High Unskilled Worker Own-Wage Elasticity Please Stand Up?," GEMF Working Papers 2005-13, GEMF - Faculdade de Economia, Universidade de Coimbra.
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Citations

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Cited by:
  1. Boss, Alfred & Christensen, Björn & Schrader, Klaus, 2010. "Die Hartz IV-Falle: Wenn Arbeit nicht mehr lohnt," Kiel Discussion Papers 474/475, Kiel Institute for the World Economy (IfW).
  2. Berthold, Norbert & Coban, Mustafa, 2013. "Mini- und Midijobs in Deutschland: Lohnsubventionierung ohne Beschäftigungseffekte?," Wirtschaftswissenschaftliche Beiträge 119, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
  3. Thomas K. Bauer & Jochen Kluve & Sandra Schaffner & Christoph M. Schmidt, 2009. "Fiscal Effects of Minimum Wages: An Analysis for Germany," German Economic Review, Verein für Socialpolitik, vol. 10, pages 224-242, 05.
  4. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014. "The Own-Wage Elasticity of Labor Demand: A Meta-Regression Analysis," IZA Discussion Papers 7958, Institute for the Study of Labor (IZA).

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