IDEAS home Printed from https://ideas.repec.org/p/iab/iabdpa/200723.html
   My bibliography  Save this paper

Was muten sich Arbeitslose zu? : Lohnkonzessionen von ALG-II-Empfängern

Author

Listed:
  • Bender, Stefan

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

  • Koch, Susanne

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

  • Meßmann, Susanne
  • Walwei, Ulrich

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

Abstract

"The paper examines wage requirements of recipients of Unemployment Benefit II (ALG II), taking up former evaluations by Christensen on wage demands of the unemployed in Germany. Unlike Christensen, we did not base our analyses on the German Socio-Economic Panel (SOEP). Instead, we used the cross-sectional data provided by the Institute for Employment Research (IAB) in a survey focused on the living conditions and social security aspects ('Lebenssituation und soziale Sicherung') of recipients of ALG II, carried out at an early stage after the reform of unemployment benefit and social assistance in Germany. We were especially interested in finding out whether the unemployed have become more prepared to reduce their wage demands since the introduction of the German Social Code II (SGB II) compared to the period up to 2000 (cf. Christensen). To do so, we particularly investigated the ratio between wages paid before unemployment and reservation wages, the dependency of this ratio on the duration of unemployment as well as the factors determining the reservation wage level. Analyses of the most recent IAB survey of ALG II recipients demonstrate that the preparedness to accept lower wages has not (yet) increased significantly since the introduction of SGB II. Descriptive results show that the reservation wage level tends to be independent of the recipient's current employment status. Instead, the wage level demanded is rather determined by whether the recipient lives on his or her own or in a multiparty household. The indicated reservation wage level increases with the number of children in the household. Taking the Reservation Wage Ratio (RWR) as a basis as in Christensen's study, it emerges that respondents state they are prepared to accept employment only on provision of a net hourly wage rate increase of 13% on average compared to that previous to unemployment. Another outcome is that the RWR does not decrease in line with the duration of unemployment. Recipients' personal circumstances are also fundamental to the reservation wage level in the multivariate estimations, the wage received before unemployment being the most significant indicator. The present results must be considered preliminary for two reasons: firstly, there is still potential for more detail in the multivariate analyses. Secondly, due to initial difficulties in implementing the new SGB II-based legislation on the part of the responsible bodies, it is unlikely that the available data as yet fully reflect the impacts of the reform, in particular with respect to indications on reservation wages. Ultimately, we will only be in a position to learn more about the preparedness of ALG II recipients to reduce wage requirements when we have access to data on the issues in focus over a sequence of several years, which is planned by the IAB." (Autorenreferat, IAB-Doku)

Suggested Citation

  • Bender, Stefan & Koch, Susanne & Meßmann, Susanne & Walwei, Ulrich, 2007. "Was muten sich Arbeitslose zu? : Lohnkonzessionen von ALG-II-Empfängern," IAB Discussion Paper 200723, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:200723
    as

    Download full text from publisher

    File URL: http://doku.iab.de/discussionpapers/2007/dp2307.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krug, Gerhard & Dietz, Martin & Ullrich, Britta, 2008. "The impact of firm characteristics on the success of employment subsidies : a decomposition analysis of treatment effects," IAB Discussion Paper 200818, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Stefan Sell, 2008. "Nachtrag: Reform der Agenda 2010: Notwendige Korrekturen oder Rückschritt?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(02), pages 16-19, January.

    More about this item

    Keywords

    Arbeitslosengeld II-Empfänger; Einkommenserwartung - Determinanten; Arbeitsanreiz;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iab:iabdpa:200723. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IAB, Geschäftsbereich Dokumentation und Bibliothek). General contact details of provider: http://edirc.repec.org/data/iabbbde.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.