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Churning and institutions : Dutch and German establishments compared with micro-level data

Author

Listed:
  • Alda, Holger

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Allaart, Piet
  • Bellmann, Lutz

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"Often the high level of unemployment in Germany is explained by a lack of flexibility, over-regulation in the labour market and disincentives of the social security system. However, these institutional effects are difficult to test by means of data from only one country. Cross-country comparisons are hindered by the availability of comparable datasets, especially at the establishment level. The comparative analysis of labour markets with different degrees of flexibility, regulation, and social security systems will show the importance of these institutions for the mobility of individuals. In this paper we will estimate regressions - almost identically specified - using establishment datasets from Germany and the Netherlands. We do not only analyse the process of hiring and firing, but also the extent to which they occur simultaneously. Churning can be regarded as the part of hiring which occurs above the level of replacement of separations. Our results show that German establishments have significantly lower churning rates than their Dutch counterparts. To some extent this can be explained by a different economic situation and a different age-structure of the working population. Important labour market institutions exerting some influence on churning appear to be: the share of fixed term contracts in total employment (higher in the Netherlands), the German apprenticeship system, and the German works councils." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Alda, Holger & Allaart, Piet & Bellmann, Lutz, 2005. "Churning and institutions : Dutch and German establishments compared with micro-level data," IAB Discussion Paper 200512, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:200512
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    References listed on IDEAS

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    1. Giuseppe Nicoletti & Stefano Scarpetta & Olivier Boylaud, 2000. "Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation," OECD Economics Department Working Papers 226, OECD Publishing.
    2. Burgess, Simon & Lane, Julia & Stevens, David, 2000. "Job Flows, Worker Flows, and Churning," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 473-502, July.
    3. Freeman, Richard B., 2002. "Institutional differences and economic performance among OECD countries," LSE Research Online Documents on Economics 20063, London School of Economics and Political Science, LSE Library.
    4. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
    5. Katharine G. Abraham & Susan N. Houseman, 1994. "Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium," NBER Chapters,in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 59-94 National Bureau of Economic Research, Inc.
    6. Burgess, Simon & Lane, Julia & Stevens, David, 2001. "Churning dynamics: an analysis of hires and separations at the employer level," Labour Economics, Elsevier, vol. 8(1), pages 1-14, January.
    7. Lutz Bellmann & Tito Boeri, 1998. "Internal And External Adjustment To New Technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(2-4), pages 325-343.
    8. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The reform of the German works constitution act: a critical assessment," Discussion Papers 16, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    9. Addison, John T. & Bellmann, Lutz & Kölling, Arnd, 2002. "Unions, Works Councils and Plant Closings in Germany," IZA Discussion Papers 474, Institute for the Study of Labor (IZA).
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    Citations

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    Cited by:

    1. Bellmann, Lutz & Gerner, Hans-Dieter & Upward, Richard, 2011. "Job and Worker Turnover in German Establishments," IZA Discussion Papers 6081, Institute for the Study of Labor (IZA).
    2. Bachmann, Ronald & David, Peggy, 2009. "The importance of two-sided heterogeneity for the cyclicality of labour market dynamics," Technical Reports 2009,05, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    3. repec:iab:iabzaf:v:42:i:4:p:311-324 is not listed on IDEAS
    4. Laura Romeu Gordo, 2011. "Compression of morbidity and the labour supply of older people," Applied Economics, Taylor & Francis Journals, vol. 43(4), pages 503-513.
    5. Hohendanner, Christian, 2007. "Verdrängen Ein-Euro-Jobs sozialversicherungspflichtige Beschäftigung in den Betrieben?," IAB Discussion Paper 200708, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Kruppe, Thomas, 2006. "Die Förderung beruflicher Weiterbildung : eine mikroökonometrische Evaluation der Ergänzung durch das ESF-BA-Programm," IAB Discussion Paper 200621, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Eckey, Hans-Friedrich & Schwengler, Barbara & Türck, Matthias, 2007. "Vergleich von deutschen Arbeitsmarktregionen," IAB Discussion Paper 200703, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Blien, Uwe & Kirchhof, Kai & Ludewig, Oliver, 2006. "Agglomeration effects on labour demand," IAB Discussion Paper 200628, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

    More about this item

    Keywords

    IAB-Betriebspanel; Arbeitskräftenachfrage; institutionelle Faktoren; Arbeitskräftemobilität; Personaleinstellung; Entlassungen; Personalplanung; befristeter Arbeitsvertrag; Berufsbildungssystem; Gewerkschaft; Altersstruktur; Erwerbsbevölkerung; Arbeitsmarktstruktur - internationaler Vergleich; Bundesrepublik Deutschland; Niederlande;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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