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The Duration of New Job Matches in East and West Germany

  • Wolff, Joachim
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    This study compares the duration of new job matches in the east and west German labour market that formed between the start of the German Economic, Monetary and Social Union in July 1990 and December 2000. The study relies on job duration data drawn from the German Socio-economic Panel. It shows with non-parametric duration methods that job matches are less stable in east than in west Germany. However, this is not the case in the first years of the transition process, in which most likely the more profitable jobs were created and the best job matches were formed. Results form the non-parametric analysis but also from a proportional hazards model that controls for important covariates imply that the transition rates into alternative jobs and into unemployment vary with tenure in a way, which is in line with predictions of theories of job mobility such as the job specific capital hypothesis and matching theories.

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    File URL: http://epub.ub.uni-muenchen.de/360/1/wolffdp2004_10.pdf
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    Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 360.

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    Date of creation: May 2004
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    Handle: RePEc:lmu:muenec:360
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    1. Kraus, Florian & Puhani, Patrick A. & Steiner, Viktor, 1998. "Do public works programs work? Some unpleasant results from the East German experience," ZEW Discussion Papers 98-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July.
    3. Jurajda, Stepan & Terrell, Katherine, 2002. "What Drives the Speed of Job Reallocation During Episodes of Massive Adjustment?," CEPR Discussion Papers 3218, C.E.P.R. Discussion Papers.
    4. Corporate author, 2002. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Herbst 2002," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 69(43), pages 703-757.
    5. Stephen P. Jenkins, 1998. "Discrete time proportional hazards regression," Stata Technical Bulletin, StataCorp LP, vol. 7(39).
    6. Farber, Henry S., 1999. "Mobility and stability: The dynamics of job change in labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 37, pages 2439-2483 Elsevier.
    7. Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-60, December.
    8. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
    9. Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute, 2002. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Herbst 2002," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 55(20), pages 3-50, October.
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