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On the one hand, unemployment is known to have detrimental effects on individuals' mental health. On the other hand, poor mental health reduces re‐employment chances quite drastically, creating a vicious cycle. Active labour market policies (ALMPs) such as training programs or wage subsidies have been shown to ameliorate negative effects on mental health and improve labour market integration on average for the general unemployed population. In the context of individuals with severe mental health issues, however, it is unclear whether these interventions can be expected to deliver similar positive effects. In fact, one may argue that they have the potential to worsen employment prospects of individuals by adding additional stress to their pre‐existing mental health problems. Hence, this paper estimates the long‐term causal effects of ALMPs on the labour market integration of individuals with self‐reported severe mental health issues and compares estimates to individuals without such issues using unique combined survey and administrative data. Effects are estimated using the innovative double machine learning method and show that ALMPs do not only improve labour market integration of unemployed individuals with severe mental health issues, but they do so more effectively than for other unemployed individuals. [ABSTRACT FROM AUTHOR]

By analysing the childcaring experiences of female skilled workers from South Korea (hereafter, Korea) in Germany, this paper maintains that the challenges in labour market participation for highly skilled women, and especially those with children, should be understood in the context of their encounters with similar and different care and employment regimes between their home and host countries. On the theoretical level, this research confirms the argument that the migration of highly skilled workers should be contextualized not from a neoclassical perspective in which the maximization of economic profits takes priority, but from an institutional point of view in which social and cultural norms, practices, and policies in both the home and host societies are taken into consideration. Specifically, through a series of in-depth interviews conducted with skilled female migrants from Korea, this paper highlights the significance of taking the function of similar and different caring and employment regimes into account in explaining the challenges faced by highly skilled migrant women in labour market participation. On the empirical level, this paper sheds light on the migration experiences of skilled women from Asia as well as the (dis)integration processes of newcomers from third-national countries in Germany, with a focus on female migrants from Korea. [ABSTRACT FROM AUTHOR]

In a global climate where refugees are increasingly seen as a threat to national security, the business sector has become a key actor at the forefront of engagement with refugee populations. A pertinent example is the case of Germany. When German chancellor Angela Merkel opened borders for refugees in the summer of 2015, many German companies regarded her move as a welcome way to overcome labour shortages and future demographic bottle-necks. In turn, business leaders became key actors in the development of integration policies. This paper discusses if business sector engagement with refugee integration in Germany through the Wir Zusammen [We Together] initiative has resulted in altered conceptions of citizenship as practiced in everyday encounters. Focusing on business engagement through providing apprenticeships or other work opportunities, the paper demonstrates that the business sector can indeed play an important role in transforming refugee lives more broadly, beyond labour market participation. [ABSTRACT FROM AUTHOR]

The proposition that international students are not only sojourners but future immigrants has become well established in public policy. While education and immigration policy have become more intertwined, they continue to be analysed as separate spheres of influence. This paper compares Australia, Canada, and Germany, which between them host nearly 20% of all globally mobile students and where a nexus between international student and immigration policy has emerged. Using critical discourse analysis, a comparative case study design and based on a systematic literature review of over 300 studies published from 1990 to 2018, the findings revealed three ostensibly paradoxical discourses, which are discussed using the new term 'discursive pairings'. First, international students are selected for success but remain vulnerable to policy shifts that may exclude them and cause them to 'fail'. Second, international students are retained to fill economic shortages, but face difficulties being accepted on the labour market. Third, international students help build national reputation yet have been known to be exploited and subject to discrimination. The contradictions that emerge in the discourses bring into question the 'ideal immigrant' framing of international students, demonstrating that their role, acceptance, and ability to integrate into host countries is far from assured. [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 – 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]

Already at the beginning of the fifties on the initiative of Italy, negotiations began between the Italian and German governments for the recruitment of migrant-workers, which ended in 1955 with a bilateral agreement between the two countries. Through this recruitment policy and because of the labour-market (Industry and Building) the Italian migration was composed prevalently of men. Female immigration happened in the setting of family reunification and less as an independent movement project. After years of stagnation of italian emigration in the eighties it may also be noted that, since the early nineties, there has been a revival of immigration to Germany. This and modernisation processes in Italy changed the gender composition of the Italian immigration flow to Germany: the distance between male and female immigration is decreasing. A peculiarity of the Italians in Germany is the low occupational participation of women in comparison with other women from EU countries. However, we could observe regional differences, which depend on the migration typologies and the dominating economic structure in the areas. The paper will analyse this different aspects (immigration-processes, migrant-typologies and labour-market participation) by female Italian migrants. [ABSTRACT FROM AUTHOR]

In recent years, the transition from higher education to work in comparative perspective has attracted increasing attention from scholars and practitioners alike. Previous studies reveal similarities and differences in labour market outcomes across countries, but explanatory frameworks mainly refer to fields of study, whereas differences by types of institutions and types of degrees remain largely descriptive. Therefore, this paper specifically focuses on these institutional structures by arguing that the institutional stratification of higher education systems is crucial for shaping graduate employment prospects. More specifically, it is assumed that the higher the vertical differentiation of types of institutions or types of degrees, the stronger the differences of employment outcomes. This assumption is tested empirically by analysing two country cases most different in the institutional set-up of their higher education systems: Germany and Britain. By applying hazard models to the German Socio-Economic Panel and two British cohort studies (NCDS and BCS70), the paper shows that the vertical differentiation of British higher education institutions and degrees differentiates the transitions to the service class more strongly than in Germany. Thus, for understanding transition patterns from higher education to work in comparative perspective, it is necessary to take into account the institutional structure of higher education systems. [ABSTRACT FROM PUBLISHER]

On the basis of inter-cohort comparisons, this paper describes patterns of intra-generational occupational mobility in Germany and their long-term trends since World War II. It also presents conceptual links between individual mobility and developments of inequality along the life course, with a special focus on the question of the extent to which employment careers are characterised by specific forms of cumulative advantage and disadvantage. Finally, it is asked how intra-generational developments are related to inter-generational social mobility. The paper also discusses how mobility patterns can be linked to specific institutions which - together with labour market conditions - are crucial determinants of the development of inequality within a cohort. In its empirical part, the paper presents evidence from cohort-specific analyses based on life-course data from a broad range of West German birth cohorts. [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]

Germany's new immigration law, which took effect in 2005, was hotly debated over a period of four years. This paper follows the debate on the law through the newsprint media, examines the representation of immigration as an economic utility, and investigates the contents of this economic-utility perspective of immigration in light of neoliberal restructuring in Germany. The analysis focuses on 609 articles sampled from five major German daily newspapers published between July 2001 and August 2005. A discourse analysis suggests that the newsprint media represented immigration on the one hand as an economic necessity to replenish the labor market and ensure the international competitiveness of key industrial sectors. On the other hand, immigration was depicted as an economic liability that raises unemployment rates and burdens the public welfare system. Although the media emphasized the economic necessity of immigration, the final law does not permit any significant immigration of labor. The paper resolves this contradiction by situating media discourse in a wider context of neoliberal reforms and European Union expansion. [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]

Striking disparities characterise the population growth of cities in industrialised countries. Some cities suffer from ongoing population decline, whereas other cities have experienced increasing numbers of inhabitants in recent years. Whether labour market conditions or amenities via their impact on migration primarily account for differences in cities’ demographic development is an important issue. This paper investigates the determinants of the migration balance of German cities between 2000 and 2007. The focus is on the mobility of workers because labour migration in particular affects the future prospects of cities. The findings suggest that not only labour market conditions but also amenities have an impact on the net migration rate. Moreover, large cities seem to be, ceteris paribus, more attractive than small cities. This finding possibly points to the importance of amenities such as cultural infrastructure and matching externalities in urban (labour) markets that are linked to city size. Urban policy aimed at enhancing the attractiveness of cities should thus consider both boosting the local economy and improving the quality of life. [ABSTRACT FROM PUBLISHER]

We investigate whether economic functional regions capture spatial clustering of core economic indicators better than administrative regions. For this purpose, we use hierarchical linear models to measure the degree of homogenization of different regional delineations. Our results for Germany show that economic functional regions tend to capture spatial clustering better than administrative ones. However, a considerable amount of clustering at a lower aggregation level cannot be accounted for by economic functional regions, especially around metropolitan centres. Furthermore, economic functional regions, which depict commuting interrelations well, are less able to capture spatial homogenization than other economic functional delineations. [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]

Assuming that migration and integration have lasting effects on economic and social processes, this paper analyses if a diverse cultural environment has a positive impact on labour market success. We expect that culturally diverse labour markets provide new opportunities through an open and tolerant climate, thus contributing to overall economic growth. We test this assumption by analysing the successful transition from education to work depending on the regional distribution and ethnic mix of the foreign population in Germany (cultural diversity). To account for variation within Germany, cultural diversity is observed at small administrative units. We analyse a cohort of young adults at the time of the successful completion of their apprenticeship in Germany and follow them through the beginning of their career. The concentration on a homogenous group regarding occupational certificates enables us to focus on the effects of the local and social environment as well as individual characteristics such as their national background on finding a job (or not). We apply an instrumental variable design to disentangle the effects of cultural diversity and share of foreigners. The results show that both young foreigners and Germans face significantly lower barriers for employment entry in culturally more diverse German regions. [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]

Germany's apprenticeship system is and has always been considered to be the major sub-system of VET. In this context, the debate circling around the European and German Qualifications Framework (EQF and DQR) has become one of the central issues of VET research and policy. Tasks take on a concrete shape if (a) a serious approach is adopted towards the ideas underlying the European Qualifications Framework; and (b) if consideration is given to the 'construction sites' typical for the German VET system as a whole. This paper intends to sharpen VET policy awareness for the problem of dealing with those unresolved German VET issues within the context of the development of the DQR. A comparative view includes Austria and France as two countries with diverging learning cultures in VET from the German case, but obviously with more 'European' imprints within their respective VET systems. It can be shown that there is an interrelation between the attention apprenticeships as such receive against the background of European ideas such as 'progression', 'permeability' and 'lifelong learning' (LLL), including the implementation and use of 'hybrid qualifications'. [ABSTRACT FROM AUTHOR]

In several European countries, older unemployed people, after reaching a certain age, are entitled to unemployment benefit payments without having to seek new employment. The coexistence of this exemption clause and of reforms aimed at containing early retirement in the respective countries reflects a conflict of political aims – on the one hand, between an efficient labour-market policy at a time of high unemployment, and on the other hand, the goal of the comprehensive activation and labour-market integration of older workers as a response to demographic change. This paper deals with the reasons for the transfer of older long-term unemployed people on to ‘facilitated benefits’ for labour-market withdrawal in Germany. The empirical analysis shows that low or no propensity to work was rarely the motive for leaving the labour market; in particular, those anticipating a low retirement income actually wanted to be re-employed. The vast majority gave three reasons for the decision to retire: an inability to cope with requirements of available jobs; a lack of job opportunities; and an absence of proper support from the public employment agency. Thus the withdrawal of older long-term unemployed people into pre-retirement cannot be attributed to a utility-maximising decision in favour of leisure and against gainful employment, but is the primary result of the scarce re-employment prospects. [ABSTRACT FROM PUBLISHER]

Dualization is a recurrent concept in analysing the political economy of labour market reforms in European countries. While it helps to make sense of changes at the margin of labour markets, so far, it remains unclear whether there are repercussions for standard employees. The paper examines this question by assessing changes in the German labour market. We argue that the growing availability of non-standard work increases pressure on core workers to accept more flexibility. The study yields two results. First, labour market reforms were, indeed, targeted at outsiders and continued in small and sometimes contradictory steps. The direction of change was determined by the socio-economic problem pressure of the respective period, but independent of government composition. Second, while insiders objected to such marginal flexibilization in principle — once the reforms were in place — they reacted with wage moderation and other instruments, thus strengthening their competitiveness relative to flexible workers. [ABSTRACT FROM PUBLISHER]

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 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]

German educational spending per student has dramatically declined since the early 1970s. In this paper, we develop a theory of fiscal opportunism and argue that state governments exploit higher educational policies as an instrument of active labour market policy. By 'opening' universities to the masses and the extensive propagation of broader university enrolment during times of economic distress, state governments have an instrument at their disposal for lowering unemployment without generating negative budgetary implications. Thereby, the government pockets voter support not only by diminishing unemployment, but also by providing public goods particularly to the socially disadvantaged. At the same time, the state government risks a deterioration of educational quality owing to decreasing educational spending per student. We test our theoretical claims for the German states in a period ranging from 1975 to 2000 by means of panel fixed-effects models. The empirical results robustly support the hypothesis that rising unemployment ratios lead to increased university enrolment, but also significantly reduce the spending per student. [ABSTRACT FROM AUTHOR]

Current debates about activation policies focus only to a very limited degree on continental or conservative welfare states, as countries like Austria and Germany are usually assumed to exhibit a low degree of activation. However, active labour market policies have a long tradition in both countries. This paper analyses the development of active labour market policy in Germany and Austria during the last two decades with special emphasis on recent reform attempts. Against this background, the potential outcome of the central reforms is discussed. In spite of claims to 'modernise' the welfare system and labour market policies, current developments work mainly in the direction of curtailing benefits and rights of the unemployed. [ABSTRACT FROM AUTHOR]

In this paper we examine the impact of temporary work on two dimensions of social inequality: income and career mobility. Additionally, we are taking a comparative perspective on this subject by comparing Germany and the UK. To investigate the effects of temporary work we use data from the German Socio-Economic Panel and the British Household Panel Study on non-self-employed respondents. The results show that temporary work does influence the system of social inequality: we found wage penalties and an increased probability of severe negative effects on the working careers of temporarily employed persons in both countries (net of education, age, and a variety of other covariates). Thus we can conclude that temporary employment represents a substantial socio-economic risk for employees. Most importantly, this holds true for both the German and the British case, two quite distinct labour market regimes. [ABSTRACT FROM AUTHOR]

In the course of the transition from an industrial to a service economy, fundamental changes in the functioning of the labour market are expected to occur. A number of authors assert that these changes will result in an increasing external-numerical flexibility of firms which is assumed to affect labour market processes in terms of a generally higher labour market mobility and a decreasing employment stability ('high-velocity labour market'). This paper examines the hypothesis of a growing importance of numeric-external flexibility, applying simple descriptive statistical methods to the event-history data of the IAB Employment Subsample for the West German labour market covering the years 1976 to 1995. There is no evidence for an acceleration of labour market 'churning', but rather for a stagnation or even slight decline of labour market mobility since the 1970s. Furthermore, job stability has not decreased over time, as one might have expected, but rather increased. In spite of these general results it might be conceivable that service-sector jobs have become more unstable but that this effect is cancelled out by a considerable stabilization of jobs in manufacturing. It turns out, however, that there is no evidence for developments in the 'old' and 'new' labour markets to contrast in such a simple way. Services display divergent trends when broken down by sub-sectors; jobs in some of them have stabilized while there is no or an opposite change in others. [ABSTRACT FROM AUTHOR]