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Occupational upgrading and the business cycle in West Germany

Author

Listed:
  • Büttner, Thomas
  • Jacobebbinghaus, Peter

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Ludsteck, Johannes

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"The occupational skill structure depends on the business cycle if employers respond to shortages of applicants during upturns by lowering their hiring standards. The notion and relevance of hiring standards adjustment was advanced by Reder (1955) and investigated formally in a search-theoretic framework by Mortensen (1970). Devereux (2002) implements empirical tests for these theories and finds affirmative evidence for the U.S labour market. We replicate his analysis using German employment register data. Regarding the occupational skill composition we obtain somewhat lower but qualitatively similar responses to the business cycle despite of well known institutional differences between the U.S. and German labour market. The responsiveness of occupational composition wages to the business cycle is considerably lower in Germany." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Büttner, Thomas & Jacobebbinghaus, Peter & Ludsteck, Johannes, 2009. "Occupational upgrading and the business cycle in West Germany," IAB-Discussion Paper 200902, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:200902
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    Cited by:

    1. Bauer, Anja & Lochner, Benjamin, 2020. "History dependence in wages and cyclical selection: Evidence from Germany," Labour Economics, Elsevier, vol. 67(C).
    2. Sedláček, Petr, 2014. "Match efficiency and firms' hiring standards," Journal of Monetary Economics, Elsevier, vol. 62(C), pages 123-133.
    3. Brenzel, Hanna & Müller, Anne, 2015. "Higher wages or lower expectations? : adjustments of German firms in the hiring process," IAB-Discussion Paper 201506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Stüber, Heiko, 2012. "Are real entry wages rigid over the business cycle? : Empirical evidence for Germany from 1977 to 2009," IAB-Discussion Paper 201206, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Ekkehart Schlicht, 2016. "Efficiency wages: Variants and implications," IZA World of Labor, Institute of Labor Economics (IZA), pages 275-275, July.
    6. Anneleen Vandeplas & Anna Thum-Thysen, 2019. "Skills Mismatch and Productivity in the EU," European Economy - Discussion Papers 100, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. Zwysen, Wouter, 2014. "A disadvantaged childhood matters more if local unemployment is high," ISER Working Paper Series 2014-43, Institute for Social and Economic Research.
    8. Verhaest, Dieter & Bogaert, Elene & Dereymaeker, Jeroen & Mestdagh, Laura & Baert, Stijn, 2016. "Crowding Out in the Labour Market: Do Employers Lend a Hand?," IZA Discussion Papers 9654, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; berufliche Qualifikation ; Geschlechterverteilung ; Konjunkturabhängigkeit ; Lohnhöhe ; Personalanpassung ; Personaleinstellung ; Qualifikationsanforderungen ; 1984-2004;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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