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German Job Mobility and Wages

In: Internal Labour Markets, Incentives and Employment

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  • Klaus F. Zimmermann

Abstract

Unemployment has recently been a major concern of policy-makers across Europe. Job flexibility was considered a major cause for the differences in the development of unemployment between the European Union (EU) member countries and the USA (see OECD, 1994a, and Bean, 1994, for instance). It is true that the evolution of unemployment had been against western Europe in the last two decades. Figure 12.1 contains the OECD standardised unemployment rates for the period 1967–1994 for the USA, European Union, Japan and the Nordic Countries (NC) in Europe, and for some selected countries such as Western Germany, Canada, Sweden, France and the UK. The remarkable rise in unemployment in the European Union in comparison to the USA is indisputable even for such stable countries as Germany. Japan, and for a long time also the NC, have done quite well in contrast to both the USA and the European Union. The NC are well-known for their active labor market policy, and Japan has its myth of superior work habits.

Suggested Citation

  • Klaus F. Zimmermann, 1998. "German Job Mobility and Wages," Palgrave Macmillan Books, in: Isao Ohashi & Toshiaki Tachibanaki (ed.), Internal Labour Markets, Incentives and Employment, chapter 12, pages 300-332, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-37797-4_12
    DOI: 10.1057/9780230377974_12
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    References listed on IDEAS

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    1. Winkelmann, Rainer & Zimmermann, Klaus F, 1992. "Ageing, Migration and Labour Mobility," CEPR Discussion Papers 706, C.E.P.R. Discussion Papers.
    2. De New, John P & Zimmermann, Klaus F, 1994. "Native Wage Impacts of Foreign Labor: A Random Effects Panel Analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(2), pages 177-192.
    3. Brown, James N, 1989. "Why Do Wages Increase with Tenure? On-the-Job Training and Life-Cycle Wage Growth Observed within Firms," American Economic Review, American Economic Association, vol. 79(5), pages 971-991, December.
    4. Schmidt, Christoph M & Zimmermann, Klaus F, 1991. "Work Characteristics, Firm Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 705-710, November.
    5. Johnson,Paul & Zimmermann,Klaus F. (ed.), 1993. "Labour Markets in an Ageing Europe," Cambridge Books, Cambridge University Press, number 9780521443982, December.
    6. Canice Prendergast, 1993. "The Role of Promotion in Inducing Specific Human Capital Acquisition," The Quarterly Journal of Economics, Oxford University Press, vol. 108(2), pages 523-534.
    7. Muhleisen, Martin & Zimmermann, Klaus F., 1994. "A panel analysis of job changes and unemployment," European Economic Review, Elsevier, vol. 38(3-4), pages 793-801, April.
    8. Ruhm, Christopher J, 1990. "Do Earnings Increase with Job Seniority?," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 143-147, February.
    9. Brown, James N & Light, Audrey, 1992. "Interpreting Panel Data on Job Tenure," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 219-257, July.
    10. Creedy, John & Whitfield, Keith, 1988. "The Economic Analysis of Internal Labour Markets," Bulletin of Economic Research, Wiley Blackwell, vol. 40(4), pages 247-269, October.
    11. Demougin, Dominique & Siow, Aloysius, 1994. "Careers in Ongoing Hierarchies," American Economic Review, American Economic Association, vol. 84(5), pages 1261-1277, December.
    12. Hutchens, Robert M, 1989. "Seniority, Wages and Productivity: A Turbulent Decade," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 49-64, Fall.
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    Cited by:

    1. Sousa-Poza, Alfonso & Sousa-Poza, Andres A., 2007. "The effect of job satisfaction on labor turnover by gender: An analysis for Switzerland," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(6), pages 895-913, December.
    2. Felix Reichling, 2005. "Retraining the Unemployed in a Matching Model with Turbulence," Discussion Papers 04-016, Stanford Institute for Economic Policy Research.
    3. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    4. Constant, Amelie F. & Zimmermann, Klaus F., 2003. "Occupational Choice Across Generations," IZA Discussion Papers 975, Institute of Labor Economics (IZA).
    5. Constant, Amelie F. & Massey, Douglas S., 2003. "Labor Market Segmentation and the Earnings of German Guestworkers," IZA Discussion Papers 774, Institute of Labor Economics (IZA).
    6. Karsten Wasiluk, 2014. "Technology Adoption and Demographic Change," Working Paper Series of the Department of Economics, University of Konstanz 2014-05, Department of Economics, University of Konstanz.
    7. Julia Lang, 2012. "The Aims of Lifelong Learning: Age-Related Effects of Training on Wages and Job Security," SOEPpapers on Multidisciplinary Panel Data Research 478, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Klaus Zimmermann, 2005. "European Labour Mobility: Challenges and Potentials," De Economist, Springer, vol. 153(4), pages 425-450, December.
    9. Rainer Winkelmann & Klaus Zimmermann, 1998. "Is job stability declining in Germany? Evidence from count data models," Applied Economics, Taylor & Francis Journals, vol. 30(11), pages 1413-1420.
    10. Lang, Julia, 2012. "The aims of lifelong learning: Age-related effects of training on wages and job security," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62073, Verein für Socialpolitik / German Economic Association.
    11. Ponzo, Michela, 2009. "On-the-job search in italian labour markets: an empirical analysis," MPRA Paper 24200, University Library of Munich, Germany.

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    More about this item

    Keywords

    Akaike Information Criterion; Union Density; Union Wage; Earning Growth; Human Capital Approach;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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