Seniority and Job Stability: A Quantile Regression Approach Using Matched Employer-Employee Data
Abstract
Job mobility and employment durations can be explained by different theoretical approaches, such as job matching or human capital theory or dual labor market approaches. These models may, however, apply to different degrees at different durations in the employment spell. Standard empirical techniques, such as hazard rate analysis, cannot deal with this problem. In this paper, we apply censored quantile regression techniques to estimate employment durations of male workers in Germany. Our results give some support to the job matching model: individuals with a high risk of being bad matches exhibit higher exit rates initially, but the effect fades out over time. By contrast, the influence of human capital variables such as education and further training decreases with employment duration, which is inconsistent with the notion of increasing match-specific rents due to human capital accumulation. The results also suggest that the effects of certain labor market institutions, such as works councils, differ markedly between short-term and long-term employment, supporting the view that institutions give rise to dual labor markets. --Download Info
If 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 Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 07-014.Length:
Date of creation: 2007
Date of revision:
Handle: RePEc:zbw:zewdip:5502
Contact details of provider:
Postal: L 7,1; D - 68161 Mannheim
Phone: +49/621/1235-01
Fax: +49/621/1235-224
Email:
Web page: http://www.zew.de/
More information through EDIRC
Related research
Keywords: Job Durations; Mobility; Matching; Human Capital; Quantile Regression;Find related papers by JEL classification:
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-28 (All new papers)
- NEP-BEC-2007-04-28 (Business Economics)
- NEP-LAB-2007-04-28 (Labour Economics)
References
References listed on IDEASPlease 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.:
- Addison, John T. & Teixeira, Paulino & Zwick, Thomas, 2006.
"Works councils and the anatomy of wages,"
ZEW Discussion Papers
06-86, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Addison, John T. & Teixeira, Paulino & Zwick, Thomas, 2006. "Works Councils and the Anatomy of Wages," IZA Discussion Papers 2474, Institute for the Study of Labor (IZA).
- Adriana Kugler & Giovanni Pica, 2003.
"Effects of employment protection and product market regulations on the Italian labor market,"
Economics Working Papers
722, Department of Economics and Business, Universitat Pompeu Fabra.
- Kugler, Adriana D. & Pica, Giovanni, 2004. "Effects of Employment Protection and Product Market Regulations on the Italian Labour Market," CEPR Discussion Papers 4216, C.E.P.R. Discussion Papers.
- Kugler, Adriana & Pica, Giovanni, 2003. "Effects of Employment Protection and Product Market Regulations on the Italian Labor Market," IZA Discussion Papers 948, Institute for the Study of Labor (IZA).
- Dohmen, Thomas J. & Pfann, Gerard A., 2004.
"Worker separations in a nonstationary corporate environment,"
Open Access publications from Maastricht University
urn:nbn:nl:ui:27-13673, Maastricht University.
- Dohmen, Thomas J. & Pfann, Gerard A., 2004. "Worker separations in a nonstationary corporate environment," European Economic Review, Elsevier, vol. 48(3), pages 645-663, June.
- Dohmen, Thomas & Pfann, Gerard A., 2000. "Worker Separations in a Nonstationary Corporate Environment," IZA Discussion Papers 201, Institute for the Study of Labor (IZA).
- Koenker R. & Geling O., 2001. "Reappraising Medfly Longevity: A Quantile Regression Survival Analysis," Journal of the American Statistical Association, American Statistical Association, vol. 96, pages 458-468, June.
- Karen Mumford & Peter N Smith, .
"Job Tenure in Britain: Employee Characteristics Versus Workplace Effects,"
Discussion Papers
04/06, Department of Economics, University of York.
- Karen Mumford & Peter N. Smith, 2004. "Job Tenure in Britain: Employee Characteristics versus Workplace Effects," Economica, London School of Economics and Political Science, vol. 71(281), pages 275-297, 05.
- Mumford, Karen A. & Smith, Peter N., 2004. "Job Tenure in Britain: Employee Characteristics Versus Workplace Effects," IZA Discussion Papers 1085, Institute for the Study of Labor (IZA).
- Mortensen, Dale T. & Pissarides, Christopher A., 1999.
"New developments in models of search in the labor market,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627
Elsevier.
- Mortensen, Dale T & Pissarides, Christopher, 1999. "New Developments in Models of Search in the Labour Market," CEPR Discussion Papers 2053, C.E.P.R. Discussion Papers.
- 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.
- Thomas Sargent, . "Matlab code for Jovanovic's matching model," QM&RBC Codes 24, Quantitative Macroeconomics & Real Business Cycles.
- Wilke, Ralf A. & Fitzenberger, Bernd & Zhang, Xuan, 2005.
"A Note on Implementing Box-Cox Quantile Regression,"
ZEW Discussion Papers
04-61 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Wilke, Ralf A. & Fitzenberger, Bernd & Zhang, Xuan, 2004. "A Note on Implementing Box-Cox Quantile Regression," ZEW Discussion Papers 04-61, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Harminder Battu & Robert McMaster & Michael White, 2002. "Tenure and employment contracts: An empirical investigation," Journal of Economic Studies, Emerald Group Publishing, vol. 29(2), pages 131-149, May.
- Gerlach, Knut & Stephan, Gesine, 2005. "Individual tenure and collective contracts," IAB Discussion Paper 200510, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- José María Arranz & Carlos García-Serrano, .
"The Influence Of Previous Labour Market Experiences On Subsequent Job Tenure,"
Working Papers
17-03 Classification-JEL , Instituto de Estudios Fiscales.
- José María Arranz & Carlos García- Serrano, 2004. "The influence of previous labour market experiences on subsequent job tenure," Hacienda Pública Española, IEF, vol. 168(1), pages 47-68, march.
- Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
- Peter Cappelli & David Neumark, 2001. "External Job Churning and Internal Job Flexibility," NBER Working Papers 8111, National Bureau of Economic Research, Inc.
- John M. Abowd & Francis Kramarz & Sébastien Roux, 2006. "Wages, Mobility and Firm Performance: Advantages and Insights from Using Matched Worker-Firm Data," Economic Journal, Royal Economic Society, vol. 116(512), pages F245-F285, 06.
- Johnson, William R, 1978. "A Theory of Job Shopping," The Quarterly Journal of Economics, MIT Press, vol. 92(2), pages 261-78, May.
- Ronald Bachmann, 2005. "Labour Market Dynamics in Germany: Hirings, Separations, and Job-to-Job Transitions over the Business Cycle," SFB 649 Discussion Papers SFB649DP2005-045, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Farber, Henry S, 1994. "The Analysis of Interfirm Worker Mobility," Journal of Labor Economics, University of Chicago Press, vol. 12(4), pages 554-93, October.
- Boockmann, Bernhard & Steffes, Susanne, 2005. "Individual and Plant-level Determinants of Job Durations in Germany," ZEW Discussion Papers 05-89, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Dostie, Benoit, 2005.
"Job Turnover and the Returns to Seniority,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 23, pages 192-199, April.
- Benoit Dostie, 2004. "Job Turnover and the Returns to Seniority," Econometric Society 2004 North American Winter Meetings 127, Econometric Society.
- Lazear, Edward, 2003. "Firm-Specific Human Capital: A Skill-Weights Approach," IZA Discussion Papers 813, Institute for the Study of Labor (IZA).
- Bernd Fitzenberger & Ralf Wilke, 2006.
"Using quantile regression for duration analysis,"
AStA Advances in Statistical Analysis,
Springer, vol. 90(1), pages 105-120, March.
- Fitzenberger, Bernd & Wilke, Ralf A., 2005. "Using Quantile Regression for Duration Analysis," ZEW Discussion Papers 05-65, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Kugler, Adriana & Pica, Giovanni, 2003.
"The effects of employment protection and product market regulations on the Italian labor market,"
Discussion Paper Series In Economics And Econometrics
0310, Economics Division, School of Social Sciences, University of Southampton.
- Adriana Kugler & Giovanni Pica, 2003. "The Effects of Employment Protection and Product Market Regulations on the Italian Labor Market," LABORatorio R. Revelli Working Papers Series 28, LABORatorio R. Revelli, Centre for Employment Studies.
- Kugler, Adriana D. & Pica, Giovanni, 2004. "Effects of Employment Protection and Product Market Regulations on the Italian Labour Market," CEPR Discussion Papers 4216, C.E.P.R. Discussion Papers.
- Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-60, December.
- Boockmann, Bernhard & Hagen, Tobias, 2005.
"Fixed-term Contracts as Sorting Mechanisms: Evidence From Job Durations in West Germany,"
ZEW Discussion Papers
05-85, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Boockmann, Bernhard & Hagen, Tobias, 2008. "Fixed-term contracts as sorting mechanisms: Evidence from job durations in West Germany," Labour Economics, Elsevier, vol. 15(5), pages 984-1005, October.
- Fitzenberger, Bernd & Winker, Peter, 2007. "Improving the computation of censored quantile regressions," Computational Statistics & Data Analysis, Elsevier, vol. 52(1), pages 88-108, September.
- Bilias, Yannis & Chen, Songnian & Ying, Zhiliang, 2000. "Simple resampling methods for censored regression quantiles," Journal of Econometrics, Elsevier, vol. 99(2), pages 373-386, December.
- Edward P. Lazear, 2003. "Firm-Specific Human Capital: A Skill-Weights Approach," NBER Working Papers 9679, National Bureau of Economic Research, Inc.
- Alda, Holger & Bender, Stefan & Gartner, Hermann, 2005. "The linked employer-employee dataset of the IAB (LIAB)," IAB Discussion Paper 200506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Gartner, Hermann, 2005. "The imputation of wages above the contribution limit with the German IAB employment sample," FDZ Methodenreport 200502_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Boockmann, Bernhard & Fries, Jan & Göbel, Christian, 2012.
"Specific measures for older employees and late career employment,"
ZEW Discussion Papers
12-059, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Bernhard Boockmann & Jan Fries & Christian Göbel, 2012. "Specific Measures for Older Employees and Late Career Employment," IAW Discussion Papers 89, Institut für Angewandte Wirtschaftsforschung (IAW).
- Kronenberg, Kristin & Carree, Martin, 2010. "Job and residential mobility in the Netherlands: the influence of human capital, household composition and location," MPRA Paper 25840, University Library of Munich, Germany.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:5502For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

