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Doing Well in Reforming the Labour Market? Recent Trends in Job Stability and Wages in Germany

Author

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  • Giannelli, Gianna Claudia

    (University of Florence)

  • Jaenichen, Ursula

    (Institute for Employment Research (IAB), Nuremberg)

  • Rothe, Thomas

    (Institute for Employment Research (IAB), Nuremberg)

Abstract

The German "employment miracle", with a weak decline in employment and low unemployment during the great recession, seems to be a good example for a successful labour market reform. Nevertheless, there are concerns about rising inequality in the labour market. In this paper we analyze the quality of newly started jobs between 1998 and 2010 using a huge administrative data set which allows us to look at job durations and earnings for different groups of workers. We discuss changes in the distributions of job durations and earnings over time, and present microeconometric models controlling for individual, firm and regional characteristics. Our results show a fairly constant level of overall job stability, but decreasing real wages and rising wage dispersion over time.

Suggested Citation

  • Giannelli, Gianna Claudia & Jaenichen, Ursula & Rothe, Thomas, 2013. "Doing Well in Reforming the Labour Market? Recent Trends in Job Stability and Wages in Germany," IZA Discussion Papers 7580, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7580
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    Cited by:

    1. Sylvain Weber & Giovanni Ferro Luzzi, 2014. "From Lifetime Jobs to Churning?," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 150(III), pages 227-260, September.
    2. Engelbert Stockhammer & Cédric Durand & Ludwig List, 2015. "European growth models and working class restructuring before the crisis," Working Papers PKWP1508, Post Keynesian Economics Society (PKES).
    3. Ive Marx & Brian Nolan & Javier Olivera, 2014. "The Welfare State and Anti-Poverty Policy in Rich Countries," Working Papers 1403, Herman Deleeck Centre for Social Policy, University of Antwerp.
    4. Elke Jahn & Enzo Weber, 2016. "The effect of temporary help jobs on employment volatility," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(1), pages 412-427, February.
    5. Stockhammer, Engelbert & Durand, Cédric & List, Ludwig, 2015. "Growth models and working class restructuring before the crisis," Economics Discussion Papers 2015-4, School of Economics, Kingston University London.
    6. Olivier Giraud & Arnaud Lechevalier, 2018. "The grey zone and labour market dynamics in Germany," Transfer: European Review of Labour and Research, , vol. 24(3), pages 317-336, August.
    7. Wolfgang Nagl & Michael Weber, 2014. "Unemployment compensation and unemployment duration before and after the German Hartz IV reform," ifo Working Paper Series 186, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    8. Ruoff, Bea., 2016. "Labour market developments in Germany : tales of decency and stability," ILO Working Papers 994899913402676, International Labour Organization.
    9. Bofinger, Peter & Buch, Claudia M. & Feld, Lars P. & Schmidt, Christoph M. & Wieland, Volker, 2013. "Gegen eine rückwärtsgewandte Wirtschaftspolitik. Jahresgutachten 2013/14 [Against a backward-looking economic policy. Annual Report 2013/14]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201314.
    10. Niklas Engbom & Ms. Enrica Detragiache & Ms. Faezeh Raei, 2015. "The German Labor Market Reforms and Post-Unemployment Earnings," IMF Working Papers 2015/162, International Monetary Fund.
    11. Boll, Christina & Boysen-Hogrefe, Jens & Wolf, André, 2017. "Wie viel Soziale Marktwirtschaft steckt in den Wahlprogrammen zur Bundestagswahl 2017?," HWWI Policy Papers 105, Hamburg Institute of International Economics (HWWI).

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    More about this item

    Keywords

    real wages; job duration; job quality; labour market reforms; Germany; 1998-2010;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • 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
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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