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Purpose: Assess and compare scarring effects of unemployment in Germany to other countries and to consider firm heterogeneity. Design/methodology/approach: The author uses linked employer-employee data to analyze the effect of unemployment and its duration on future wages in Germany. Using administrative data on workers and firms in Germany and considering registered and unregistered unemployment episodes, the results show long-lasting wage losses caused by unemployment incidences. Furthermore, the estimations indicate that unemployment duration as well as selectivity into firms paying lower wages is of particular relevance for the explanation of wage penalties of re-employed workers. Findings: Unemployment causes massive and persistent wage declines in the future, which depend on the unemployment duration. Furthermore, reduced options of unemployed workers and selectivity in firms contribute to a large part of unemployment scarring. Practical implications: Findings are relevant for current debates on unemployment and can help design measures to avoid huge costs of unemployment. Originality/value: This paper analyses long-term unemployment scarring by considering not only unemployment duration but also selectivity in firms and its effect on the scarring effect. [ABSTRACT FROM AUTHOR]

Purpose – Up to date, it remains an unresolved issue how firms shape inequality in interaction with mechanisms of stratification at the individual and occupational-level. Accordingly, the authors ask whether workers of different occupational classes are affected to different degrees by between-firm wage inequality. In light of the recent rise of overall wage inequality, answers to this question can contribute to a better understanding of the role firms play in this development. The authors argue and empirically test that whether workers are able to benefit from firms’ internal or external strategies for flexibility depends on resources available at the individual and occupational level. The paper aims to discuss these issues. Design/methodology/approach – Matched employer-employee data from official German labour market statistics are used to estimate firm-specific wage components, which are then regressed on structural characteristics of firms. Findings – Between-firm wage effects of internal labour markets are largest among unskilled workers and strongly pronounced among qualified manual workers. Effects are clearly smaller among classes of qualified and high-qualified non-manual workers but have risen sharply for the latter class from 2005 to 2010. Social implications – The most disadvantaged workers in the labour market are also most contingent upon employers’ increasingly heterogeneous policies of recruitment and remuneration. Originality/value – This paper combines insights from sociological and economic labour market research in order to formulate and test the new hypothesis that between-firm wage effects of internal labour markets are larger for unskilled than for qualified workers. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to analyse the effect of an increase in the relative supply of immigrants on natives' task reallocation, with a focus on Germany. Specifically, it investigates whether natives, as a response to increased immigration, re-specialise in communication-intensive occupations, where they arguably have a comparative advantage due to language proficiency. Design/methodology/approach: The analysis uses regional data from the German Labour Force Survey between 2002 and 2014. To derive data on job tasks requirements, it employs the US Department of Labor's O*NET database, the results of which are tested through a sensitivity analysis using the European Working Condition Survey and the Programme for the International Assessment of Adult Competencies data sets. Findings: The paper finds that indeed German workers respond to increasing immigration by shifting their task supply and providing more communication relative to manual tasks. Importantly, the decrease in the supply of communication tasks is stronger and more robust than the increase in the supply of manual tasks, pointing to a potential displacement effect taking place between natives and immigrants, alongside task reallocation. This would suggest that countries with relatively more rigid labour markets are less responsive to immigration shocks. Moreover, it suggests that labour market rigidity can minimise the gains from immigration and exacerbate employment effects. Originality/value: The paper not only investigates task reallocation as a result of immigration in a different institutional context and labour market functioning, but the results feed into broader policy and scholarly discussions on the effects of immigration, including questions about how the institutional context affects labour market adjustment to immigration, worker occupational mobility in a more rigid labour markets and the fine balance needed between flexibility and rigidity. [ABSTRACT FROM AUTHOR]

Purpose -- The aim of this paper is to study the economic effects of risk attitudes, time preferences, trust and reciprocity and to compare natives and second generation migrants. Design/methodology/approach -- This paper is based on the IZA Evaluation Dataset, a recently collected survey of a representative inflow sample into unemployment in Germany. The data include a large number of migrant-specific variables as well as information about economic preferences and attitudes. This allows an assessment of whether and how unemployed second generation migrants differ from unemployed natives in terms of economic preferences and attitudes. Findings -- Differences are found between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. It was also found that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. Research limitations/implications +-- The findings offer interesting perspectives, e.g. with regard to the design and targeting of active labor market policy. It may be reasonable to specifically focus on less risk averse individuals with measures such as job search requirements and monitoring. Originality/value -- This paper provides novel and direct evidence on the relationship between economic preferences, attitudes and labor market reintegration of natives and second generation migrants. [ABSTRACT FROM AUTHOR]

Purpose – Many contributions to the educational mismatch literature address the productivity effects of both excess and deficit educational attainments for workers at the individual level. Due to the limited transferability of their results to establishment-level performance, especially when allowing for the possibility of spillover effects from mismatched workers to their well-matched colleagues, from an employer’s point of view, it is highly important to know the net effect of educationally mismatched employees on productivity at the establishment level. The paper aims to discuss these issues. Design/methodology/approach – This paper analyses the impact of overeducated and undereducated workers among an establishment’s workforce on its productivity, providing first representative evidence for Germany. Using linked employer-employee data from Germany, the author estimates dynamic panel production functions using a system GMM estimator. Findings – The author finds that undereducated workers among an establishment’s workforce impair its (establishment-level) productivity, implying that an establishment’s HR management should avoid the recruitment of undereducated workers, at least if they follow a short-term personnel policy. The effect for overeducated employees is also negative, albeit small and insignificant. Originality/value – The consideration of the phenomena of over and undereducation from the employer’s point of view provides further insight into the consequences of educational mismatch. [ABSTRACT FROM AUTHOR]

Purpose Working time accounts (WTAs) allow firms to smooth hours worked over time. The purpose of this paper is to analyze whether this increase in flexibility has also affected how firms adjust employment in Germany over the business cycle.Design/methodology/approach This paper uses rich microeconomic panel data and fixed effects estimations to compare the employment adjustment of firms with and without WTAs.Findings The authors show that firms with WTAs show a similar separation and hiring behavior in response to revenue changes as firms without WTAs. One possible explanation is that firms without WTAs used short-time work (STW) to adjust hours worked instead. However, the authors find that firms with WTAs use STW more than firms without WTAs.Originality/value These findings call into question the popular hypothesis that WTAs were the key driver of the unusually small increase in German unemployment in the Great Recession. [ABSTRACT FROM AUTHOR]

Purpose -- This paper aims to present the IZA Evaluation Dataset, a newly created data source allowing for the evaluation of active labor market policies in Germany. Design/methodology/approach -- The paper's approach is a description of the sampling and contents of the IZA Evaluation Dataset and an outline of its research potential. Findings -- The evaluation of active labor market policies is often confronted with a lack of adequate empirical data. The IZA Evaluation Dataset may serve as a role model for the provision of such data. Research limitations/implications -- The scope of active labor market policy instruments that can be analyzed with the IZA Evaluation Dataset is mainly restricted to measures for unemployed individuals. Originality/value -- In recent years, many countries have opened their administrative databases for evaluation studies. However, information that might be relevant for economic modeling is often absent. The IZA Evaluation Dataset aims to overcome such limitations for Germany by complementing administrative data from the Federal Employment Agency with innovative survey data. [ABSTRACT FROM AUTHOR]

Purpose -- This paper seeks to shed further light on the native-migrant differences in economic outcomes. The aim is to investigate labor market reintegration, patterns of job search, and reservation wages across unemployed migrants and natives in Germany. Design/methodology/approach -- The paper is based on the IZA Evaluation Dataset, a recently collected rich survey of a representative sample of entrants into unemployment in Germany. The data include a large number of migration variables, allowing us to adapt a recently developed concept of ethnic identity: the ethnosizer. The authors analyze these data using the OLS technique as well as probabilistic regression models. Findings -- The results indicate that separated migrants have a relatively slow reintegration into the labor market. It can be argued that this group exerts a relatively low search effort and that it has reservation wages which are moderate, yet still above the level which would imply similar employment probabilities as other groups of migrants. Research limitations/implications -- The findings indicate that special attention heeds to be paid by policy makers to various forms of social and cultural integration, as it has significant repercussions on matching in the labor market. Originality/value -- The paper identifies a previously unmapped relationship between ethnic identity and labor market outcomes. [ABSTRACT FROM AUTHOR]

Purpose -- This paper seeks to analyse to what extent absolute wage levels, relative wages compared with colleagues, and the position in a firm's hierarchy affect workers' absenteeism behaviour. Design/methodology/approach -- The paper uses personnel data of a large German company from January 1999 to December 2005. The data set contains 62,774 monthly observations of 1,187 full-time white-collar workers. Probit and Tobit models for individual monthly absenteeism are estimated. Findings -- Absenteeism is negatively correlated with absolute wages, relative wages, and hierarchical levels, which is in line with the paper's hypotheses. Moreover, the results indicate that a positive relative wage has a stronger impact than a negative relative wage, which gives rise to the issue of unequal wage structures. Research limitations/implications -- The findings point to the relevance of interdependent preferences and status in utility functions. From the non-linear relationship between relative wages and absenteeism it follows that an unequal wage structure has the benefit that relatively better paid workers are absent less frequenty, while the costs of higher absenteeism of workers at the lower tail of the wage distribution are rather low. Practical implications -- The results show that not only the absolute wage level but also status-related factors (e.g. relative wage, hierarchical level) affect employees' work effort and that unequal wage structures can be efficient to some degree. Originality/value -- The paper provides "real world" evidence from scarce personnel data for the importance of interdependent preferences and status. Furthermore, the non-linear relationship between relative wages and absenteeism is examined. [ABSTRACT FROM AUTHOR]

Purpose -- Employment protection legislation defines social criteria according to which firms can dismiss workers. If firms evade the law, then negotiation about compensation begins. To reduce the legal and financial uncertainty often associated with ex post bargaining, the German government stipulate severance payments in the case of mutual agreements in law in 2004. This paper aims to examine whether social criteria affect the dismissal probability of workers. Design/methodology/approach -- The probability of receiving compensation and the factors determining the amount of severance payment are estimated when it comes to private negotiations about the termination of an employment contract. In addition, the effect of the reform of the employment protection legislation on the probability of receiving compensation and the amount of redundancy pay is analysed. A stepwise estimation strategy is developed to account for sample selection bias when examining which workers receive severance payments and the determinants of severance pay variation. Empirical evidence is provided using German panel data for the period 2000-2006. Findings -- The paper shows that workers protected by law have the lowest probability of being dismissed. The expected severance payment and firm size increase the probability of receiving compensation while the amount of severance payment depends significantly on the way the employment relationship is dissolved. Contrary to the intention of the legislator, the reform increases the level of compensation. Originality/value -- The paper fills a gap in the literature by taking into account selectivity bias when estimating the probability of receiving redundancy pay and the size of compensation. The evidence also provides insights which may be useful for the ongoing discussion to reform employment protection legislation in Germany. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of the paper is to estimate the effectiveness of two start-up programs (bridging allowance and start-up subsidy) in East Germany. Design/methodology/approach -- Using a combination of administrative data from the Federal Employment Agency and a follow-up survey (for roughly 1,300/1,000 participants/non-participants), the analysis is based on the conditional independence assumption. Kernel matching estimators are applied to estimate the treatment effects and test the sensitivity of the results using a conditional difference-in-differences approach. Findings -- At the end of the observation period both programs are effective: unemployment rates of participants are lower, and employment rates and personal income are higher when compared to non-participants. Additionally, first descriptive evidence of the additional employment effects through direct job creation is presented, which is quite significant for the bridging allowance and negligible for participants in the start-up subsidy. Research limitations/implications -- Participants in the start-up subsidy are in their third year of participation at the end of the observation period and mostly still receive further support (although at a reduced rate). Therefore, the results for this program have to be treated as preliminary. Practical implications -- In contrast to other active labor market programs that have been evaluated recently (including job-creation schemes and vocational training programs) this paper finds considerable positive effects for start-up subsidies. Hence, programs aimed at turning the unemployed into entrepreneurs may be a promising strategy in East Germany. Originality/value -- This is one of the first studies that allows inferences to be drawn about the effectiveness of start-up programs in East Germany. Most previous studies on the effectiveness of active labour market policies in the Eastern part of Germany neglected these programs. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to study the determinants of naturalization of non-EU immigrant household heads with a fresh look at the role of integration and ethnicity. Design/methodology/approach -- Employing data on immigrant household heads from the German Socioeconomic Panel differentiation is made among those who already have been naturalized, those who plan to take citizenship, and those who do not have citizenship and do not want it, using multinomial probit models. The subject scope includes literature on naturalization, ethnicity, and integration. Findings -- A robust finding is that German citizenship is very valuable to female immigrant household heads and the generally better educated, but not to those educated in Germany. The degree of integration into German society has a differential effect on citizenship acquisition. While a longer residence in Germany has a negative influence on actual or future naturalization, arriving at a younger age and having close German friends are strong indicators of a positive proclivity to citizenship acquisition. Likewise, ethnic origins and religion also influence these decisions. Muslim immigrants in Germany are more willing to become German citizens than non-Muslim immigrants, but there are also fewer German citizens among Muslims than among non-Muslims. Research limitations/implications -- Future research should also investigate the second-generation naturalization proclivities and those of illegals. Practical implications -- Allowing for dual citizenship helps generate more naturalizations among Muslims. Originality/value -- The paper provides a test of the relative importance of the integration approach in comparison with the ethnicity model; demonstrating that integration in German society has a stronger effect on naturalization than ethnic origin and religion. [ABSTRACT FROM AUTHOR]

This paper analyzes the careers of 230 professional judges in the German labor court system. Judges who are promoted early for the first time - "fast starters" - are more likely to be promoted for the second time. Fast starters, however, do not achieve a second promotion earlier - there is no evidence of a fast career track. Furthermore, judges who publish scientific books or papers are more likely to be promoted for the second time. Hence, careers neither are random nor do they follow bureaucratic criteria such as seniority. They can be understood as the outcome of a succession of tournaments for promotion that sustains career prospects both for "fast starters" and for "late bloomers". Implications for judicial incentives and the quality of matching of judges with judicial offices are inferred. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to examine the role wage dispersion across establishments has played in recent increases in total wage inequality in Germany and compares it to inequality changes at the individual level. It is queried whether the contribution of establishment heterogeneity to the rise of wage inequality stems from changes of institutional settings or from structures such as establishment size and the composition of the workforce. Design/methodology/approach – Applying regression-based decompositions of variance to German linked employer-employee panel data for the years 2000-2010 it is analysed to what extent changes associated to firm structures contribute to the rise of total wage inequality. Findings – Results show that the rise in wage inequality in Germany to a great extent is associated to rising wage variance across establishments, implying that establishment specific wage premiums have grown. By further decomposing across firm components of wage inequality, it is found that changes in across establishment wage inequality related to collective bargaining, worker co-determination and internal labour markets together account for about 3 per cent of the rise in total inequality. Inequality changes related to establishments’ skill and occupational composition account for about 11 per cent and establishment size alone accounts for about 18 per cent of the rise in total inequality. Originality/value – The main contribution is to quantify the relation of specific establishment characteristics to the rise in total wage inequality over time. Conclusions are drawn about the importance of mechanisms of rent sharing at the firm level in comparison to the determination of wages by individual qualification. [ABSTRACT FROM AUTHOR]

Purpose: German establishments face increasing difficulties in filling their apprentice positions. Thus, firms are less able to train (and later retain) their own skilled workforce. The purpose of this paper is to analyse the firms' personnel policy adjustments in response to unfilled apprentice positions. Design/methodology/approach: To estimate the within-firm personnel policy adjustments when unfilled apprentice positions arise, fixed effects panel estimations are applied to a large German establishment-level data set, the IAB Establishment Panel (2008–2016). Findings: The estimates indicate that some firms post slightly more apprentice positions in the period after facing unfilled apprentice positions. Moreover, the results reveal that affected craft establishments in urban regions retain more apprenticeship graduates. Besides of these findings, there are no indications of emphasised personnel policy adjustments. Practical implications: The multivariate results do not support the claim that training firms may abstain from apprenticeship training when facing unfilled apprentice positions. Originality/value: The study shows first evidence of firms' personnel policy adjustments when apprentice positions remain vacant in Germany, a country with a traditionally high relevance of apprenticeship training. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to elicit young economists' job preferences through the use of a choice experiment (CE). Design/methodology/approach: A CE conducted at a total of five universities in Spain, the Czech Republic and Germany. After estimating a random parameter logit model, the monetary value of the willingness to accept a specific job attribute is simulated. Findings: The most important job characteristic, consistent across countries and universities, is a long-term career prospect at the company. Originality/value: This is the first CE conducted on business and economics students' job preferences in three European countries. Using the same survey instrument allows for the comparison of students' job preferences across countries and also between private and public universities. [ABSTRACT FROM AUTHOR]

Purpose – The research question which this paper aims to address is: To what extent does (labour) flexibility contribute to crisis resistance at establishment level? More specifically, the authors seek to analyse the determinants of variation in the extent to which establishments showed resistance to the global financial crisis (GFC), i.e. the extent to which they were affected by the crisis, focusing on an available secondary dataset related to organizational, industry-level, and (numerical) labour flexibility. Design/methodology/approach – Based on a unique cross-sectional dataset of 8,000 establishments in Germany, the authors use binary logistic regression to assess the link between organizational characteristics, industry-specific factors and workforce characteristics, and the fact that some establishments were affected by the GFC while others were not affected. Findings – Establishment size, being located in western Germany and business problems before the crisis were positively associated with being affected by the crisis. The sector of economic activity also played a significant role. Contrary to predictions relating to the strategies employed by flexible firms, the extent to which they made use of temporary agency workers or of fixed-term employees showed no significant association with crisis resistance. Practical implications – The dependent variable measures the management respondent's (subjective) perception of being affected by the crisis, although it does not specify the ways in which a company has been affected, for example by a drop in demand or by difficulty in extending credit. The set of independent variables permits several tentative conclusions regarding numerical and functional flexibility, but it does not take alternative forms of flexibility into account. Originality/value – Using a unique and representative dataset, the findings suggest a less important role for numerical flexibility in establishment performance and crisis resistance when compared to other variables, at least within the authors' research framework and its exceptional external economic circumstances. [ABSTRACT FROM AUTHOR]

Purpose – After a brief glance at the global labour market after the financial meltdown the paper aims to explain some general mechanisms of short-time work in Germany. Furthermore it seeks to present an overview of the costs of short-time work for the establishments with respect to the latest labour market reforms in Germany. In the multivariate analyses with the IAB Establishment Panel the paper aims to identify the determinants of short-time work and its intensity in Germany. Thus it's goal is to contribute to the discussion of the modified and amended legislative framework for short-time work. Design/methodology/approach – The microeconometric analysis is based on data from the IAB Establishment Panel, a representative survey of the labour demand in Germany. With data from the survey waves 2008-2010 the probability of the use of short-time work with probit regression models and its intensity with truncated regression models are explained. Findings – The manufacturing industry as a German key industry was more affected than other sectors and suffered even harder. Despite the fact that the German labour administration has successfully reduced the bureaucracy of short-time work, the programme is still rather adopted by bigger establishments. German establishments have utilized their flexibility reserves and complementary short-time work to protect their core staff during the crisis. There is also some empirical evidence that the establishments tried to avoid brain drains. With the first signs of a recovery of the economy at the beginning of 2010 the establishments benefitted a lot from that strategy as they were instantly able to satisfy increasing demands in their markets again. Empirical evidence is also found that establishments made more intensive use of short-time work the harder they were suffering from the crisis. Originality/value – For the first time the latest data from the survey wave 2010 of the IAB Establishment Panel is used and compared with the 2009 survey wave. The structure of the panel questionnaire allows the implementation of some specific questions concerning the use of short-time work. The IAB Establishment Panel has a sample size of approximately 16,000 cases. [ABSTRACT FROM AUTHOR]

Purpose -- Labor market programs may affect unemployed individuals' behavior before they enroll. The aim of this paper is to study whether such ex ante effects differ according to ethnic origin. Design/methodology/approach -- The authors apply a method that relates self-reported perceived treatment rates and job search behavioral outcomes, such as the reservation wage or search intensity, to each other. German native workers are compared with migrants with a Turkish origin or Central and Eastern European (including Russian) background. Job search theory is used to derive theoretical predictions. The ex ante effect of the German active labor market program (ALMP) system is examined using the novel IZA Evaluation Data Set which includes self-reported assessments of the variables of interest as well as an unusually detailed amount of information on behavior, attitudes and past outcomes. Findings -- It is found that the ex ante threat effect on the reservation wage and search effort varies considerably among the groups considered. Originality/value -- The study is the first to investigate whether migrants and natives react similarly to the expectation of participating in an ALMP, and whether migrants of different regions of origin react similarly or not. [ABSTRACT FROM AUTHOR]

Purpose -- This paper aims to analyze the role of social networks on the job search choices of the unemployed. If social networks convey useful information in the job search process, individuals with larger networks should experience a higher productivity of informal search channels. This in turn affects the choice of formal search intensity and the reservation wage. The paper seeks to test these search-theoretic implications of productive social networks empirically. Design/methodology/approach -- The authors use the IZA Evaluation Dataset containing detailed information on job search behavior of recently unemployed individuals. Observing a rich array of personality traits and direct measures of the social network, the authors choose an identification approach based on observable characteristics using least squares and binary probit regression analysis. Findings -- The findings confirm theoretical expectations. Individuals with larger networks use informal search channels more often and shift from formal to informal search. In addition to that, evidence is found for a positive relationship between network size and reservation wages. Research limitations/implications - The extent to which networks are used during job search most likely also depends on the quality of the network, which cannot be observed in the data. However, as the network significantly changes the observable formal job search effort of individuals, public job search monitoring policies should take these effects into account. Originality/value -- The paper complements the previous body of literature on the role of social networks in the labor market that predominantly focuses on labor market outcomes. By highlighting the interaction between networks and job search choices the paper improves the understanding of realized labor market outcomes in the presence of networks. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to investigate the extent and the human-capital determinants of low-wage mobility for labour market entrants in the UK and Germany. Design/methodology/approach -- Using panel data for the UK (BHPS) and Germany (GSOEP), a competing-risks duration model is applied that allows the study of transitions from low pay to competing destination states: higher pay, self-employment, unemployment and inactivity. Unobserved heterogeneity is tackled by a non-parametric mass-point approach. Findings -- It is found that low pay is only a temporary state for most young job starters. However, there is a small group of job starters that is caught in a trap of low pay, unemployment or inactivity. In the UK, job starters escape from low pay mainly by developing firm-specific skills. In Germany, involvement in formal vocational training and the attainment of apprenticeship qualifications account for low pay exits. Originality/value -- Over the past decades, unemployment and low-wage employment have emerged as major challenges facing young labour market entrants. While most empirical studies focus exclusively on the transition from low pay to high pay, the paper shows that a significant percentage of young entrants are caught in a low-pay-non-employment trap. Moreover, it is shown that, depending on the institutional context, different types of human capital investments can account for a successful low-pay exit. [ABSTRACT FROM AUTHOR]

Purpose -- In 1997 minimum wages were introduced in the West and East German construction sector. The purpose of this paper is to analyze their impact on wage growth and employment retention probability of affected workers. Design/methodology/approach -- Following a difference-in-differences approach the paper proposes a method to identify the effects of this quasi-experiment despite the lack of information on working hours in the large panel microdata. The method determines the size of the treatment and control group by the maximum likelihood criterion. Findings -- All results show positive wage growth effects of the minimum wage regulation in both parts of the country. When it comes to employment effects, the results clearly differ between the two parts of the country. The employment effects are negative for East Germany and positive for West Germany, although the latter are not always statistically significant. Research limitations/implications -- Although there is a limit to the simple transferability of the results for the construction sector to other industries, the study provides some useful insights for this country concerning reactions to the minimum wage. This is the first paper analyzing the effect of minimum wages in Germany using microeconometric methods. Practical implications -- As the minimum wage in the East German construction sector was much higher in relation to the median wage than in West Germany, a tentative conclusion of the different employment results might be that the trade-off between increasing wages for low-paid workers and the danger of job losses does not exist in this case if minimum wages are moderate. Originality/value -- This paper provides valuable information on the impact of wage growth and employment retention probability in Germany. [ABSTRACT FROM AUTHOR]

Purpose -- The paper aims to present an analysis of the indirect and direct effects of active labour market policy measures at the regional level for Western Germany. Design/methodology/approach -- Most evaluation studies of active labour market policy focus on the microeconometric treatment effect using individual data and do not account for possible indirect effects like deadweight and substitution effects. The present study uses a dynamic specification of the augmented matching function at the regional level. A dynamic panel data model is estimated using monthly and regional variation of different labour market programmes as explanatory variables. Furthermore, spatial interactions are taken into account by adding a spatially correlated error term. Findings -- Almost no significant negative effects are found of the stock of participants in programmes of labour market policy on the number of outflows from unemployment into regular jobs. Thus, contrary to findings at the individual level, no lock-in effect is found. The number of programme participants does not reduce the number of outflows from unemployment. On the other hand when looking not at the stocks but on the outflows from programmes, no positive effects on outflows from unemployment at the regional level are found. Research limitations/implications -- Because of data limitations only a period up to six months after completing a programme is used. Originality/value -- The authors distinguish between the effects of the stock of programme participants and of the outflows from programmes. Furthermore, the authors account for spatially correlated error terms by using a GM estimator proposed by Muff in 2006. [ABSTRACT FROM AUTHOR]

Purpose — The aim of this paper is to model the dynamic path of adjustment towards pre-unemployment levels of wellbeing for a group of full-time workers who experienced job loss. Design/methodology/approach — Based on data from the German Socio-economic Panel, a large-scale panel survey, the paper captures the non-linear nature of the adaptation process by using an Exponential Smooth Transition Autoregressive (ESTAR) model. Findings — The study finds that adaptation takes place in a non-linear fashion, with the speed of adjustment being higher for high earners, those with high pre-unemployment levels of life satisfaction and those who were most satisfied with their jobs before becoming unemployed. It also finds that most of the adaptation takes place during the first year of unemployment, with adaptation speeds decreasing with unemployment duration, suggestive of possible habituation effects being present. Originality/value — This is the first study to model the dynamic path of adjustment towards pre-unemployment wellbeing levels as a non-linear process. Despite the challenge posed by adaptation theory and the recent interest in the wellbeing effects of job loss, there is only sparse empirical evidence on the dynamics of the adaptation to unemployment process. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this research is to investigate whether the participants in an employee survey who do not answer one or more demographic items differ systematically from those who fill out all demographic items. Design/methodology/approach - Logistic regression, with affective commitment, job satisfaction, and attitude towards leadership as predictors of responding to demographic items is used to analyze the data of an employee survey in a German company. Findings - Survey participants with low commitment, poor job satisfaction, and negative attitudes towards leadership are more likely not to provide demographic information, while highly committed participants tend to answer all demographic items. Non-respondents are also more concerned that their skills become obsolete, and they feel that employees do not have enough say. Research limitations/implications - The paper does not distinguish among demographic item non-respondents on the basis of how many and which items are omitted. Future research should take a closer look at the different sensitivity of the demographic items. Practical implications - Managers should be aware that it is likely that the results of an employee survey for their organizational subunits tend to be biased and show a picture that is too optimistic as compared to company-wide results. Originality/value - The value of the paper lies in demonstrating a systematic and practically important bias in employee survey statistics that has been overlooked so far. [ABSTRACT FROM AUTHOR]

Purpose - How many hours per week should workers in the USA and Germany spend at their paying jobs? The present paper aims to address this question by constructing policymakers' reaction functions capable of modelling the optimal length of working time as a function of the relevant labour market variables. Design/methodology/approach - The study is based on a counterfactual policy experiment. Given a policymaker's loss function and a structural model of the labour market alternative specifications of reaction functions are defined where the response coefficients indicate how policymakers should react to any news in the labour market in order to stabilise employment and wages. Findings - The results suggest that simple rules perform quite well and that the advantages obtained from adopting an optimal control-based rule are not so great. Moreover, the analysis emphasises the success of the wage-based rule and of the employment-based rule in the USA and Germany, respectively. Research limitations/implications - The study is based on a counterfactual policy experiment, which perhaps limits its operational value. Practical implications - Labour market authorities might stabilise employment and wages by implementing policy rules. Originality/value - The paper proposes a policy rule to capture the dynamics of the weekly working hours. According to the rule in the paper the length of the workweek is an inverse function of the deviation between the actual and potential employment level. [ABSTRACT FROM AUTHOR]

Purpose - This paper is a cross-national study of the incidence of part-time work. The purpose of this paper is to investigate to what extent the difference between Germany and The Netherlands can be explained from the demand side of the labour market. Design/methodology/approach - Several motives of employers for the introduction of part-time jobs are distinguished. Their relevance is tested by means of firm-level data for the two countries within the framework of a multivariate analysis. Findings - The study finds that, in The Netherlands, part-time jobs are more widespread than in Germany. The reasons for this difference are diverse: the difference in industrial structure (more manufacturing in Germany, more services in The Netherlands), less working students in Germany, and probably more reluctance on the side of German employers to meet the preferences of their workers. Originality/value - The paper fills a gap in the literature on part-time work, especially about the importance of institutions differing between the countries. This evidence may be useful in designing policies to increase the incidence of part-time work. [ABSTRACT FROM AUTHOR]

This paper analyses why in Germany and The Netherlands the share of apprentices in the business service sector is lower than in other economic sectors. A theoretical introduction surveys the potential reasons that could be responsible for this. The subsequent empirical analysis shows that the level of skill apprentices gain is the main explanation for the relatively low supply of apprenticeships in German business service enterprises. In The Netherlands, the option to hire skilled employees from fill- time schools instead of training apprentices seems to be crucial. For these reasons, this paper proposes to offer obligatory extra formal training in areas such as IT skills and foreign languages for the apprentices in business service firms in Germany in order to increase the attractiveness of the dual apprenticeship system for prospective apprentices as well as business service firms. [ABSTRACT FROM AUTHOR]

Purpose International empirical evidence suggests that immigrants have a significantly higher risk than their native counterparts of being on welfare due to their observed characteristics. Nevertheless, it remains unclear if immigrants are also more prone to take-up benefits, conditional on being eligible. The authors explicitly focus on this potential explanation for higher welfare take-up rates. Therefore, the purpose of this paper is to analyze the take-up of social assistance in Germany by immigrants and natives, conditional on being eligible, and hence focus on take-up behavior rather than on determinants of eligibility.Design/methodology/approach To simulate welfare entitlements, the authors employ a Tax-Transfer Microsimulation Model. It is a static microsimulation model that consists of a detailed implementation of the German tax and transfer system as well as an econometrically estimated labor supply model. After the simulation of welfare entitlements, the authors analyze take-up behavior within a discrete choice framework. The authors estimate probit models of observed welfare benefit take-up for the sample of eligible households taking into account unobserved heterogeneity.Findings The estimation results do not reveal a significant effect of being a migrant on the probability of taking-up entitlements. The authors found a significant negative effect for citizens from European countries on the take-up probability, which disappeared after controlling for unobserved heterogeneity.Research limitations/implications The authors find that it is worthwhile to focus on different groups of immigrants. Although not statistically significant, the rates of non-take-up of welfare benefits differ between different immigrant groups. The analysis further shows that controlling for unobserved heterogeneity is important when analyzing welfare differences between immigrants and natives.Practical implications The higher welfare rates of immigrants are explained mainly by their higher risk of welfare dependence. Thus, given that reducing the welfare dependence of immigrants is a political goal, social policy measures to improve welfare recipients’ labor market prospects are contested. However, restricting eligibility rules to reduce entitlements does not seem to be the appropriate measure, because the take-up probability does not differ between immigrants and natives after controlling for individual characteristics.Originality/value The authors build on Castronova et al. (2001) and analyze the take-up behavior of individuals who are entitled to basic means-tested welfare benefits for employable persons in Germany. The analysis differs from Castronova et al. (2001) in four points. First, the authors provide first evidence of immigrant-native differences in welfare benefit take-up under the new welfare system in Germany after its reorganization in 2005. Second, the authors apply a microsimulation model of the comlete tax and transfer system in Germany to determine welfare eligibility. Third, the authors extend the analysis to a panel framework and take into account individual unobserved heterogeneity. Fourth, the authors distinguish between different groups of immigrants. [ABSTRACT FROM AUTHOR]

Purpose: This article aims to examine whether specific job tasks measured at the individual level or personality traits are associated with wages and whether the relationship between personality traits and wages differs depending on the job tasks that individuals perform. Design/methodology/approach: This study analyzes the association between job tasks and personality traits, and their interaction, with regard to wages using German employee data from 2017/2018. Findings: Results suggest that nonroutine manual, interactive or analytic tasks are associated with significantly higher wages compared to routine manual tasks, and while extraversion and emotional stability are related to higher wages, agreeableness and openness tend to be associated with lower wages also within occupations. Moreover, the association between personality traits and wages varies depending on the job task requirements at the workplace. A high degree of extraversion in particular is associated with higher wages when the employee performs nonroutine manual, interactive or analytic tasks. Originality/value: To date, especially the interaction between individual job tasks and personality traits on wages has not been extensively studied because data on both job tasks and personality at the employee level are scarce. This study contributes to the understanding of wage differences among employees. [ABSTRACT FROM AUTHOR]

Purpose – Various types of short training programmes exist in Germany. This article aims to evaluate short training courses for welfare recipients and to detect which programme type works best with respect to different outcome indicators. Design/methodology/approach – The author measures the impact of six short training programmes on the participants. She uses propensity score matching and large-scale administrative data to find suitable comparison groups. She compares treatment to non-participation as well as participation in different training types directly. Findings – The results demonstrate that in-firm training has large positive effects on individual employment prospects and stability. Furthermore, classroom skill training is more effective than other classroom types while application training is rather ineffective. Treating some of the application training participants with an alternative sub-programme would improve the effectiveness. Research limitations/implications – The results show which training types work best. However, the results do not imply macro or cost-benefit effects. Practical implications – Several of the short training courses, mostly occupation-specific sub-programmes, are short and relatively inexpensive options to activate welfare recipients. Originality/value – The paper analyses the effects of six short training programmes for welfare recipients that have not been analysed before. The sensitivity of the results is examined using a wide range of estimators and different outcomes. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to analyze the welfare use of Turkish immigrants and natives in Germany. The authors ask whether the immigrant-native gap in welfare use can be explained by observable characteristics, whether the mechanisms behind welfare dependence differ for Turkish immigrants and natives, and, finally, they compare the situation before and after the 2005 reform of the German welfare system. Design/methodology/approach – Using data from the German Socio-Economic Panel Study, the authors estimate linear probability models with random effects to investigate the correlates of transfer receipt for Turkish immigrants and natives. Findings – Turkish immigrants have a higher propensity to use welfare benefits than natives. After controlling for general individual and household level characteristics, the difference in welfare receipt is statistically significant only for the group of second generation immigrants. The correlation of observable characteristics with welfare dependence differs significantly for the native and immigrant sample. The share of benefit recipients increased after the policy reform in 2005 for both immigrants and natives. Practical implications – First, as human capital and particularly labor market status are important determinants of welfare use, training programs designed for the special needs of immigrants might support their labor market integration. Second, measures to ameliorate the integration of older people into the labor market might be particularly useful because the need for welfare benefits arises particularly at the 50-60 age range. Originality/value – This is the first study to investigate welfare use of Turkish immigrants after the German 2005 labor market policy reform. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to analyse how characteristics of the HR department and HR work, which relate to resource availability and resource needs, influence HR outsourcing. The study examines the subject of human resource (HR) outsourcing. Design/methodology/approach – The potential influence of firms' characteristics on HR outsourcing is analysed theoretically and empirically. The dataset (n=1,021) covers a broad spectrum of personnel services and is based on computer-aided telephone interviews with chief executives and human resource managers of German firms. Findings – Generally, we find that firm size and previous reorganization activities significantly raise the probability of an HR outsourcing. In contrast, there is no overall significant influence of central characteristics of HR work or the HR department on HR outsourcing in general. Originality/value – Although there is a trend toward the outsourcing of work, little research is being done on the relationship between the expected effects of outsourcing, the make-or-buy decision of decision makers, and the firm's characteristics themselves. This study sheds some more light on the relationship between HR outsourcing and firms' characteristics and finds some interesting relationships. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to derive an empirical method to identify different types of training strategies of companies based on publicly available company data. Design/methodology/approach -- Using a ten-year panel, the within-firm retention rate, defined as the average proportion of apprentices staying in a company in relation to all apprenticeship graduates of a company over several years, was analyzed. The within-firm retention rate is used to identify these companies' training strategies. Findings -- It was shown that companies' motivation for apprenticeship training in Germany is not homogeneous: 19 percent of all companies follow a substitution strategy and 44 percent follow an investment strategy. The determinants of the substitution strategy were estimated and, for example, sizeable differences were found between sectors with different skill requirements and between firms' coverage of industrial relations. Research limitations/implications -- The method is well suited to classify substitution-motivated training firms but it is less precise in identifying the investment motivation. Moreover, very small firms which train only one apprentice need longer panel duration for precise results and therefore the classification results are less precise for very small firms. Practical implications -- The classification can be used to identify determinants of company participation in apprenticeship training and to predict changes in demand for apprentices. Originality/value -- A simple and innovative method of identifying different types of training motivation with publicly available company data was derived, which has so far been possible only with very detailed company-specific apprenticeship surveys. [ABSTRACT FROM AUTHOR]

Purpose -- This paper aims to introduce a new large-scale panel study ("PASS") for research on the labour market, the welfare State and poverty that combines a sample of 6,000 recipient households with an equally large sample of the general population. Design/methodology/approach -- The authors show how research goals and the specific population of the survey are accounted for in a tailored survey design. Findings -- The authors point the reader to new research potential created by the new study. ,The new potential is mainly derived from the sampling design (large recipient sample combined with a population sample), the direct measurement of poverty by a deprivation index, the detailed measurement of the migratory background, additional information (like attitudes, search intensity) for models of recipiency dynamics, and the linkage of the survey data with administrative data. Originality/value -- The data set described fills a major gap in the data-infrastructure available for labour-market research. From a methodological point of view it presents an innovative sampling design. [ABSTRACT FROM AUTHOR]

Purpose - The aim of the paper is to assess the determinants and impact of employer sponsored further training on wage growth in West Germany over the period 1992 to 2002. Design/methodology/approach - Following a descriptive narrative on further training and wages in Germany, data derived from the West German sub-sample of the German Socio-Economic Panel is being utilised, which has the main advantage of providing detailed information about the respondents' labour market histories prior to and after 1992. The information provides powerful predictors, controlling for the endogeneity of the training participation decision when estimating a wage growth equation. To assess the impact of training on wages, Heckman selectivity corrected wage equations are used, with the selection being based on a probit model for the probability that an individual receives firm-sponsored training. Findings - The analysis provides details of significant gender differences in both, the incidence and earnings impact of further training. The results show that further training has a strong positive effect on wages. However, gender inequality issues remain a salient feature of the German training system, which further training only reinforces. The analysis also suggests that the economic conditions during Germany's post-unification period may have mitigated some of the potential benefits of further training on wage growth. Originality/value- Despite its growing importance, the determinants and earnings impact of employer-sponsored, further training have attracted little attention in the empirical literature. Even less is known about the impact of further training during Germany's post-unification period. This paper adds value by contributing to this fledgling field of investigation. [ABSTRACT FROM AUTHOR]

Tests the hypothesis that overeducation is contingent upon the differing human capital endowments of employees. The analyses are based on data from the German life History Study (GLHS). Apples a trivariate probit model which takes into account the selective acquisition of school qualifications, and the selective choice of vocational training programs with varying levels of quality. The findings confirm that the type of school diploma obtained has a strong effect on the later risk of overeducation. Furthermore, in the case of the intermediate school diploma - the qualification typically held by those entering initial vocational training in Germany - the grade attained also proves to have a strong effect on the risk of overeducation. In Me with the existing literature, this paper finds that the risk of overeducation decreases as traditional human capital endowments such as experience, tenure, and on-the-job-training increase. [ABSTRACT FROM AUTHOR]

Summarizes the institutional arrangements and prerequisites for a different social partnership, necessary for the successful completion of labor market reform in western Germany. Importance of the labor market and its institutions in the German social market economy before turning to the case for reform; Employment and social policies that constitute a package of complementary instruments to fight high unemployment; Implications of the reform of the German labor market.

The apprenticeship system is the most important source of formal post-secondary training in Germany. Using German register data - the IAB Employment Sample - it is found that apprentices staying with their training firm after graduation have a longer first-job durations but not higher wages than apprentices leaving the training firm. Retention rates, first job durations, and post-apprenticeship wages are all increasing functions of training intensity. Some implications for the ongoing debate as to why finns are willing to invest in general training are discussed. [ABSTRACT FROM AUTHOR]

Presents a study which investigated whether there are differences in the patterns of labor market entrance in Germany and Italy as of March 2000. Comparison on their educational system; Conclusions.

Purpose -- Investigating employee responses to relational fulfilment of the psychological contract and work-life benefits of a telecommuting program, this study aims to contribute to the literature on social exchange in employment. Design/methodology/approach -- The setting of the study was the German public administration. Survey data from 947 Civil Servants were analyzed in structural equation models. Analysis of mean structure was used to compare telecommuting participants (n = 601) and regular workers (n = 346). Findings -- Trust and affective commitment consecutively mediated between relational fulfilment of the psychological contract and organizational citizenship behavior. Members of the telecommuting program had more positive representations of social exchange, reporting higher levels of fulfilment, trust, and commitment than their peers. Research limitations/implications -- Reliance on cross-sectional self-report data poses a limitation. Selection effects in the quasi-experimental design for comparing telecommuters and regular employees cannot be ruled out. Generalizability to more transactional or short-term employment is debatable. Originality/value -- The study adds to a more integrated understanding of the psychological processes that reinforce and strengthen employee trust and commitment, thus forming the basis of the motivation to go above and beyond specified duties and reward-contingent behavior. [ABSTRACT FROM AUTHOR]

Examines the influence of marginal cost and return on an individual's decision to attend higher education in Germany. Participation probability; Financial constraints; Return expectations in terms of labor market outcome.

Analyzes the quality of labor market entry of newly qualified apprentices in Germany from 1948-1992. Apprenticeship-to-work transition; Crowding-out of trainees with lower levels of general education; Employment prospects of school leavers.

Examines the relationship between German trade unions and works councils. Details of the three main influences on the works councils; Findings of a survey of works council chairpersons from the west and east German metalworking industries regarding the dynamics of workplace industrial relations; Framework for analyzing workplace industrial relations.

Addresses the issue of whether the 2001 German model of employee relations will resemble a more flexible version of the current one or whether it will emerge as an Anglo-Saxonized German model. Main characteristics and track record of the model of labor relations; Economic effects of a strong employment protection legislation; Assessment of the series of reforms throughout the 1990s.

Outlines a model that synthesizes insights from X-efficiency and business strategy theory to highlight the positive effects of consensus on business performance in Germany. Characteristic features of the German economic models in consensus, stability and high productivity growth; Discussion on X-efficiency and strategic management theories to gain competitive advantage; Information on the economic aspects of unemployment in Germany.