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Further Training and Company-Level Pacts for Employment in Germany

Author

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  • Bellmann Lutz

    (Chair of Labour Economics, University of Erlangen-Nuremberg & Department Establishments and Employment, Institute for Employment Research, Regensburger Str. 104, 90478 Nuremberg, Germany)

  • Gerner Hans-Dieter

    (University of Erlangen-Nuremberg & Department Establishments and Employment, Institute for Employment Research, Regensburger Str. 104, 90478 Nuremberg, Germany)

Abstract

This paper aims at investigating whether or not and to what extent company-level pacts for employment and competitiveness (CLPs) have an impact on the accumulation of human capital. The effect of CLPs on further training is analyzed utilizing the IAB Establishment Panel data of the years 2003 to 2007. CLPs are agreements between firms’ management and their respective workforce that are characterized by reduced wages or prolonged working hours in exchange for employment guarantees or investment programs, such as further training. CLPs not only explicitly contain clauses concerning further training, but also increase employment stability and may increase the firms’ incentives for human capital investments, due to the employees’ wage concessions. In order to test this hypothesis we apply parametric as well as semiparametric cross-section time-series regression models. However, our findings suggest that CLPs do not exert positive causal effects on human capital formation as measured by further training incidence and intensity variables.

Suggested Citation

  • Bellmann Lutz & Gerner Hans-Dieter, 2012. "Further Training and Company-Level Pacts for Employment in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(2), pages 98-115, April.
    • Handle: RePEc:jns:jbstat:v:232:y:2012:i:2:p:98-115
    DOI: 10.1515/jbnst-2012-0202
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    Cited by:

    1. Janik Florian, 2014. "Teilnahmeverweigerungen in Betriebsbefragungen / Unit-Nonresponse in Establishments Surveys: Eine Analyse anhand des IAB-Betriebspanels 2009 / An Analysis Using the IAB Establishment Panel 2009," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(4), pages 474-489, August.
    2. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2017. "Contract Innovation in Germany: An Economic Evaluation of Pacts for Employment and Competitiveness," British Journal of Industrial Relations, London School of Economics, vol. 55(3), pages 500-526, September.
    3. Lutz Bellmann, 2014. "Do in-plant alliances foster employment?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-79, June.
    4. Lutz Bellmann & Werner Widuckel, 2022. "In-plant alliances can mitigate economic crisis impacts," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-79, December.

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