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Workers, Firms, or Institutions: What Determines Job Duration for Male Employees in Germany?

  • Boockmann, Bernhard
  • Steffes, Susanne

We examine job durations of German workers using linked employer–employee data. Our results indicate that exit rates are strongly influenced by firm characteristics. The effects of some of these characteristics, however, are limited to particular job positions or skill groups. There is clear evidence for a sorting process whereby workers with long expected job durations are matched to firms offering stable employment (and vice versa). An extension of the model to a competing-risks framework shows that both individual and firm-level characteristics differ greatly in their impact on job exit to different destination states. Among the substantive results, it would appear that works councils decrease exit both to unemployment and to new jobs, but do so only for blue collar workers.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-116.

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Date of creation: 2008
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Handle: RePEc:zbw:zewdip:7506
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  8. Dohmen, Thomas J. & Pfann, Gerard A., 2004. "Worker separations in a nonstationary corporate environment," European Economic Review, Elsevier, vol. 48(3), pages 645-663, June.
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  10. Mumford, Karen A. & Smith, Peter N., 2004. "Job Tenure in Britain: Employee Characteristics Versus Workplace Effects," IZA Discussion Papers 1085, Institute for the Study of Labor (IZA).
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  17. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
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  21. Mario Cleves & William W. Gould & Roberto G. Gutierrez & Yulia Marchenko, 2010. "An Introduction to Survival Analysis Using Stata," Stata Press books, StataCorp LP, edition 3, number saus3, November.
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  23. Addison, John T & Schnabel, Claus & Wagner, Joachim, 2001. "Work Councils in Germany: Their Effects on Establishment Performance," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 659-94, October.
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  25. Harminder Battu & Robert McMaster & Michael White, 2002. "Tenure and employment contracts: An empirical investigation," Journal of Economic Studies, Emerald Group Publishing, vol. 29(2), pages 131-149, May.
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