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Unemployment and occupational mobility at the beginning of employment career in Germany and the UK

  • Schmelzer, Paul

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

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    "The beginning of the employment career is often associated with phases of unemployment. We argue that unemployment has different implications for different educational groups on future employment career depending on institutional settings in the UK and Germany. While search and matching models argue that an unemployment phase might be used for an active job search and might result in a better position, human capital and signalling theory predict status losses. The strongly skill-based and rigid labour market in Germany creates a stigma attached to unemployment and therefore might have negative consequences upon the re-entry into the labour market for all educational groups. The 'trial and error' strategy at the beginning of an employment career in flexible labour markets is common and therefore search and matching models should predict positive outcomes in the UK, especially for high-educated persons. Using the German Socio-Economic Panel and British Household Panel we simultaneously estimate hazard rates and changes in the occupational status." (Author's abstract, IAB-Doku) ((en))

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    Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 201125.

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    Length: 24 pages
    Date of creation: 12 Jan 2011
    Date of revision:
    Handle: RePEc:iab:iabdpa:201125
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    1. Böheim, René & Taylor, Mark P., 2000. "The search for success: do the unemployed find stable employment?," ISER Working Paper Series 2000-05, Institute for Social and Economic Research.
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    4. Mare, David C., 2006. "Constructing consistent work-life histories: a guide for users of the British Household Panel Survey," ISER Working Paper Series 2006-39, Institute for Social and Economic Research.
    5. Gangl, Markus, 2002. "Unemployment benefits as a search subsidy: New evidence on duration and wage effects of unemployment insurance," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-208, Social Science Research Center Berlin (WZB).
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    8. Jovanovic, Boyan, 1984. "Matching, Turnover, and Unemployment," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 108-22, February.
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    10. Garloff, Alfred & Pohl, Carsten & Schanne, Norbert, 2011. "Do small labor market entry cohorts reduce unemployment?," IAB Discussion Paper 201118, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. repec:dgr:uvatin:2098084 is not listed on IDEAS
    12. repec:dgr:uvatin:1998084 is not listed on IDEAS
    13. Gregory, Mary & Jukes, Robert, 2001. "Unemployment and Subsequent Earnings: Estimating Scarring among British Men 1984-94," Economic Journal, Royal Economic Society, vol. 111(475), pages F607-25, November.
    14. Colette Fagan & Brendan Halpin & Jacqueline O’Reilly, 2005. "Service Sector Employment in Germany and the UK," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(1), pages 97-107.
    15. Rodríguez-Planas, Núria, 2004. "Re-Employment Bonuses in a Signalling Model of Temporary Layoffs," IZA Discussion Papers 1010, Institute for the Study of Labor (IZA).
    16. Jaap H. Abbring & Gerard J. van den Berg & Pieter A. Gautier & A. Gijsbert C. van Lomwel & Jan C. van Ours & Christopher J. Ruhm, 1998. "Displaced Workers in the United States and the Netherlands," Tinbergen Institute Discussion Papers 98-084/3, Tinbergen Institute.
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