Search

In this paper we employ a wage-setting approach to analyze the labor market effects of immigration into Germany from 1980 to 2004. This enables us to consider labor market rigidities, which are prevalent in Europe. We find that the elasticity of the wage-setting curve is particularly high for young workers. Moreover, natives and foreigners are imperfect substitutes. The wage and employment effects of immigration depend on the skill structure of the immigrant workforce. Because the foreign labor supply shift has mainly affected the high-skilled labor market segment, the 4 percent increase of the workforce through immigration has not increased either aggregate or foreign unemployment. [ABSTRACT FROM AUTHOR]

In this paper, we present a review of various computational experiments concerning neural network (NN) models developed for regional employment forecasting. NNs are nowadays widely used in several fields because of their flexible specification structure. A series of NN experiments is presented in the paper, using two data sets on German NUTS-3 districts. Individual forecasts are computed by our models for each district in order to answer the following question: How relevant are NN parameters in comparison to NN structure? Comprehensive testing of these parameters is limited in the literature. Building on different specifications of NN models-in terms of explanatory variables and NN structures-we propose a systematic choice of NN learning parameters and internal functions by means of a sensitivity analysis. Our results show that different combinations of NN parameters provide significantly varying statistical performance and forecasting power. Finally, we note that the sets of parameters chosen for a given model specification cannot be light-heartedly applied to different or more complex models. [ABSTRACT FROM AUTHOR]

In this article the author comments on the study conducted by Michael Burda and Jennifer Hunt that examines the condition of the labor market and gross domestic product (GDP) during the recession in Germany. He examines the two broad classes of explanation used by the researchers in assessing the condition of the GDP and labor market in the country. The author recognizes that the study has drawn attention to two sources of labor hoarding, which has an important bearing on the German market.

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]

The main objective of this paper is to analyze the determinants of the shadow economy within a coherent Structural Equation Model using a data set of 11 latent variables with 58 indicators from 35 countries. The shadow economy is closely connected to its determinants; a higher wealth and development level, a better administrative system, lower taxes and social security payments and the extent of labor market regulations determine the level of shadow economy. Germany ranks 16th of 35 countries by shadow economy, with a score of 3.6, with the best being New Zealand, 1.0, and the worst Romania, 10. [ABSTRACT FROM AUTHOR]

With the transition to the European Monetary Union (EMU), the instrument of monetary policy for individual member countries has been abolished. This step has led to serious challenges for the different states to stabilize their economies to various economic shocks. Different labor market rigidities lead to different responses to monetary impulses in the countries. The paper deals with this problem by setting up a VAR system to investigate the different shocks on Germany and Austria. The results show that Germany experiences less fluctuation in growth and unemployment than Austria, which can be assigned to its higher labor market rigidities. [ABSTRACT FROM AUTHOR]

How individual wages change with time is one of the crucial determinants of labour market decisions including the timing of retirement. The focus of this paper is the relationship between age and wages with special attention given to individuals nearing retirement. The analysis is presented in a comparative context for Britain and Germany looking at two longitudinal data sets (BHPS and SOEP, respectively) for the years 1995-2004. We show the importance of cohort effects and selection out of employment which determine the downward-sloping part of the 'inverse-U' profile observed in cross-sections. There is little evidence that wages fall with age. [ABSTRACT FROM AUTHOR]

This paper analyses the duration of child poverty in Germany. Observing the entire income history from the individuals' birth to their coming of age at age 18, we are able to analyse dynamics in and out of poverty for the entire population of children, whether they become poor at least once or not. Using duration models, we find that household composition, most importantly single parenthood, and the labour market status as well as level of education of the household head are the main driving forces behind exit from and re-entry into poverty and thus determine the (long-term) experience of poverty. [ABSTRACT FROM AUTHOR]

The erosion of internal labor markets, together with the rise of flexible forms of work such as projects, increases uncertainty regarding the coordination of work and labor market transactions, and it makes employment, income and career perspectives less predictable. This paper addresses the questions of what, if any, kinds of institutional and social-structural conditions are able to provide stability in the absence of the open-ended employment relationship, and which individual certainty strategies are used. On the basis of qualitative, semi-structured interviews with experts and project workers in the German television and film industry, it is argued that the institutional and social-structural context matters crucially for individual strategies to reduce uncertainty. More specifically, this paper aims at contributing to a better understanding of the interrelationship between networks and biographies, and of the interaction between networking and other forms of coping with risks and uncertainty. [ABSTRACT FROM AUTHOR]

This paper uses nonparametric techniques to study GDP convergence across German labor market regions and counties during the period 1992–2004. The main result is that regional convergence in unified Germany has been substantial. In the first years after German unification the distribution of GDP has been characterized by a pronounced bimodality. The dispersion of the GDP distribution has become substantially smaller over time. Although some bimodality remains in most recent years, this bimodality is weak in comparison to previous years. Nevertheless, disparities among regions located in the Eastern and Western part of the country are still apparent. [ABSTRACT FROM AUTHOR]

Copyright of Sozialer Fortschritt is the property of Duncker & Humblot GmbH and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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]

Due to labor market reforms in Germany some years ago, the incentives to work changed. The paper analyzes the effects of the reforms on the reservation wages for specific groups. The replacement rates implied by the system of unemployment benefits and by the rules of means-tested social assistance are investigated in detail. In addition, the paper describes the development of the replacement rates in the recent decades. It turns out that the replacement rates increased in the period 1950 to 1975. Thereafter, the rates for the specific groups developed differently. However, in 2008 the rates are higher than they had been in the fifties and the sixties. [ABSTRACT FROM AUTHOR]

Investigating the transition from education to employment among school leavers from different ethnic backgrounds, this paper focuses on the structural integration of ethnic minorities through the labour market. Distinguishing blue collar and white collar employment as destination states, proportional hazards models for competing risks are estimated on the basis of the German Socio-Economic Panel (GSOEP). The results reveal that the factors influencing the transition to employment differ considerably depending on the type of employment. The study argues that a sole indicator of unemployment is insufficient to draw conclusions on the integration of ethnic minorities in the labour market. [ABSTRACT FROM AUTHOR]

Female labor market activity is dependent on the presence and the age of a child, but how do the determinants develop in magnitude and significance with the child's age? Using German SOEP data from 1991 to 2006 for mothers with young children, the change in maternal labor supply when the child is one, two, and three years old is explicitly addressed. According to the tobit regression results for precise working hours, maternal labor supply becomes increasingly responsive to economic incentives - mainly to imputed wages - as the child grows. [ABSTRACT FROM AUTHOR]

The paper studies the long-term effect of part-time employment on the wage career using panel data for three countries. The main idea is to study the possible 'scarring' effects of part-time employment on future hourly wages up to ten years later in the career. Fixed effects panel wage regressions show the existence of a part-time wage penalty for females in all three countries and for males in the UK. Longer durations of part-time result in stronger negative wage effects. In the UK, a negative effect of past part-time employment is also found to persist even after a lasting transition to a full-time job. The fact that the effect of part-time on wage is larger in the UK suggests that wage penalties, contrary to what could be expected, are smaller in regulated labour markets with a specific skills regime. [ABSTRACT FROM AUTHOR]

Copyright of Arbeit is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The distribution of European and national aid among 271 German labor market regions is considered as an optimization problem with three targets: (i) interregional equalization of unemployment rates; (ii) minimization of total (national) unemployment; and (iii) maximization of GDP, subject to budget constraints and some administrative restrictions. The analysis of the German program in 2000–2002 shows that the results actually obtained for 6 billion euro required only 241 million euro under optimal planning (4% of the actual budget). Such an inappropriate implementation of active labor market policies can be the cause of low efficiency, often misinterpreted as uselessness. This paper suggests a decision aid for optimal planning and shows that tax returns from the additional GDP due to jobs subsidized can transform regional policy into a winning governmental strategy. [ABSTRACT FROM AUTHOR]

The author discusses the labor market of temporary agencies in Germany. He describes the position of Randstad in the German market. As one of the largest temporary and contract staffing organizations in the world, Randstad delivered creative employment solutions with 312,000 flexworkers in 20 countries in 2006. Further, he also adds the results of some neglected international papers on the effects of temporary agency works and discusses the incentives of temporary agencies for flexworkers' human capital investments.

The "big trade-off," described by Arthur Okun some thirty years ago, is back again: equality or efficiency, or to put it differently, modern highly developed economies and societies have to choose between the Scylla of income inequality and the Charybdis of unemployment. Furthermore, it looks like the continental European economies—foremost Germany and France—sided with more egalitarian ends accepting higher unemployment while the liberal economies such as the United States and the United Kingdom chose higher inequality for lower unemployment. In this paper it is argued that the trade-off is not a supply-side necessity to maintain work effort in a situation of incomplete contracts, but is a politico-economic issue of particular interest groups seeking rents. However, unlike in Mancur Olson's seminal approach, it is not the trade unions that are forming distributional coalitions on the labor market, but rather the meritocracy which is happy to use Keynesian-type demand management to advance their material interests by pursuing a "meritocratically optimal rate of unemployment" (MORU). [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 aims to map some of the diversity in employee relations in Germany that is overlooked, first, within assessments of the German labour market that focus on the national level and second, within separate studies in this ares that emphasize attempts by employers to circumvent important institutions. Design/methodology/approach - The research adopts a quantitative approach to examine data for German manufacturing and service sectors on both the spread of industry-wide collective agreements and the extent to which workers are paid wage rates that are higher than those set out in those agreements. It also assesses the prevalence of profit sharing and employee share ownership schemes. Findings - Industry-wide collective agreements are not the burden that they are often portrayed. Actual wage rates and the prevalence of profit sharing and ESOSs make German workplaces more heterogeneous than critics and advocates of the German economic model posit. Research limitations/implications - The data are limited to Germany; however, Germany occupies a prominent position, not just within much of the employment relations literature, but also in terms of economic output. The research is also limited by an inability to provide evidence on workplaces that undercut sectoral collective agreements and to disaggregate the data further by sector and firm size/location. Originality/value - The paper provides a counterpoint to the portrayals of employee relations in Germany that often present a homogeneous picture of those relations. For the first time, data on the spread of profit sharing and employee share ownership schemes in German workplaces at the sectoral level are provided. [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]

In general, the 'mega-trends' represented by, for example, globalisation, the shift to a service economy coupled with high levels of technological change and a long-term shrinkage in the working population all make a more adaptable and skilled workforce in high income countries necessary. The pervasive effects of these mega-trends are often interpreted as suggesting that there is only one optimal institutional configuration to achieve good employment outcomes, which therefore needs to be adopted by all countries. As Britain seems closer to this ideal type than Germany, one would expect a better labour market performance in the former than in the latter, as well as a convergence in labour market policies and outcomes in Germany towards the British model. Taking into account the different starting positions of Germany and Britain, particularly with regard to important differences in monetary policy contexts, the paper evaluates whether and to what extent national public policy patterns are actually converging towards a higher level of flexibility. [ABSTRACT FROM AUTHOR]

This paper argues that the effect of openness to trade on process innovations and skill premia importantly depends on the structure of labor markets in developed countries. Openness to trade with less developed countries is often modelled as a fall in the relative price of unskilled-labor intensive goods. We show within the model of Acemoglu (2003b) that such a fall in the relative price can make wage floors more binding and trigger costly process innovations that increase the productivity of unskilled workers. Empirical evidence using an industry panel for the US and Germany in the 1970s to 1990s supports this hypothesis: (i) embodied technology change seems distorted towards unskilled-labor intensive industries in Germany where wage floors are more important and (ii) embodied technology change in the 1980s is associated with an increase of the share of skilled labor in the wage bill of 15 percentage points in the US whereas the corresponding increase in Germany is much smaller at 3 percentage points. [ABSTRACT FROM AUTHOR]

The paper analyses the change of job stability and its determinants in the course of time by presenting some empirical evidence from Germany. Drawing upon event history data from the German Federal Labour Office insurance accounts and employing Cox Proportional Hazard Rate Models, we test six core hypotheses on labour market restructuring and its impacts on job stability. Our analysis suggests that during the transition to service society between the 1980s and the 1990s some kind of ‘restructuring’ of the German labour market has taken place that has simultaneously led to an increasing polarisation and to an increasing levelling out of individual employment chances and risks. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper critically reviews literature on the behaviour of US-based Multi National Companies (MNCs) in Germany in relation to the historic institutions of the German labour market works councils and industry wide collective bargaining. The German system is becoming increasingly company father than sectorally centred, and US based companies have reinforced a wing of German employer opinion seeking to further these developments. Surveys show US based companies generally accepting works councils and sectoral bargains but case study evidence also shows them seeking to weaken links with parts of the system external to the company. A typology is pro- posed and it is argued that many US based companies appear to follow a ‘formal compliance/content avoidance dichotomy’ tending to exacerbate the system's existing tendencies towards disarticulation. They also tend to explore all options available to them within the existing system. A research agenda is suggested. [ABSTRACT FROM AUTHOR]

This paper challenges the institutional sclerosis view of the German crisis according to which rigid labour markets and generous welfare state institutions have driven Germany into its position as 'Europe's sick man'. In general, the view is not convincing, because the underlying hypotheses about the effects of labour market regulation and welfare state institutions on employment and growth cannot unambiguously be derived from modern labour market theory and are at least partially at odds with accepted empirical findings. In particular, the explanation is unconvincing, because in international comparison Germany's labour market and welfare state institutions are simply not as sclerotic as often supposed. In most of the aggregate indicators for structural rigidities Germany is not worse than the average OECD or EU country. Moreover, there is a macroeconomic explanation focusing on the combined effects of restrictive and pro-cyclical monetary, fiscal and wage policies in Germany that is broadly consistent with modern macroeconomic theory and is supported by empirical data. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Family Research (JFR) is the property of University of Bamberg Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We investigate economic causes of the rising support of populist parties in industrialised countries. Looking at Germany, we find that exposure to imports from low-wage countries increases the support for nationalist parties between 1987–2009, while increasing exports have the opposite effect. The net effect translates into increasing support of the right-populist Alternative for Germany party after its emergence in 2013. Individual data from the German Socio-Economic Panel reveal that low-skilled manufacturing workers' political preferences are most responsive to trade exposure. Using a novel approach to causal mediation analysis, we identify trade-induced labour market adjustments as an economic mechanism causing the voting response to international trade. [ABSTRACT FROM AUTHOR]

The German labour market is in dire need of regulatory changes. The Hartz Commission was assigned the task to provide measures for the reform of German labour market policy. This paper, analyses whether the suggestions of the commission promise a substantial improvement of labour market policy with the intended effect of a large decrease in unemployment. To check this, results from theoretical and empirical labour market research are used to create a benchmark. The suggestions of the commission are checked against this benchmark. The result is, however, that the suggested policies of the commission are not well suited to provide a substantial reduction of unemployment. In the final part of the paper, the reason for political failure in this area is analysed as well as the role of commissions. [ABSTRACT FROM AUTHOR]

Most evaluation studies for Germany’s active labor market policy (ALMP) indicate that subsidized employment programs in the public sector (public works programs, “Arbeitsbeschaffungsmaßnahmen”) and publicly funded training programs have, on average, no or even negative effects on individual re-employment probabilities. This paper provides possible explanations for the ineffectiveness of these programs, where we focus on heterogeneous treatment effects, which are not accounted for in the German evaluation studies due to lack of data, and locking-in effects, in particular related to the relatively high level of income support for participants in these programs. Since there is very little direct evidence on these effects for Germany to date, we draw on results from evaluation studies for other European countries. We argue that the success of ALMP is to a large extent determined by design features like the targeting of particular groups and the incentives from the co-ordination with unemployment insurance as well as the incentives of program administrators and local governments. [ABSTRACT FROM AUTHOR]

A political miracle occurred when Germany was reunited, and at first glance an economic miracle has followed. Real incomes in the eastern area have now reached the western level, and investment per capita has been much higher than in the west. However, every third deutschmark spent in the east has been coming from the west, investment in equipment has fallen below the west German per capita level, and convergence seems to have come to a halt at an overall labor productivity of only 59% of west Germany. Excessively high wages coupled with investment incentives that made the cost of capital negative rank high among the possible explanations. This paper describes reforms of the labor market that could help to make convergence continue. [ABSTRACT FROM AUTHOR]

This paper presents and evaluates two interpretations of the eastern German labour market. These interpretations are called ‘wage gap’ and ‘innovation gap’. The former follows standard neoclassical thinking and regards high eastern German unemployment as the consequence of too high a wage level. The latter follows endogenous growth theory and regards a lack of product innovations as the main constraint on output and employment growth in the eastern German economy. The paper argues that the ‘innovation gap’ explains the facts much better than the ‘wage gap’. From this, the paper draws conclusions for economic policy: given the high interregional mobility of the workforce and the erosion of collective bargaining in eastern Germany, the wage level is not an appropriate policy instrument anymore. Instead, policy should aim at strengthening the innovative power of the eastern German economy by supporting research and development in the region. [ABSTRACT FROM AUTHOR]

The paper discusses the economic policy concept of the annual report of the German Council of Economic Advisers 1999/2000 and the major structural problems in Germany. Addressed are the long-run allocative distortions of the tax reform, solutions to the issue of pension and to the institutional arrangement of the labor market. The paper describes the necessary steps to generate a more dynamic economy. [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]

Copyright of Journal for Labour Market Research is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper investigates subjective labour market incorporation of European physicians in Germany as high‐skilled intra‐EU immigrants by analysing their perceived career advancement. Applying reference frames as an analytical tool, understood as comparisons with as significant perceived social others, my approach not only scrutinises immigrants' career assessments but also disentangles the differentiation mechanisms that the physicians interviewed deem responsible for their career advancement, whilst accounting for transnational comparisons as a possible compensatory strategy. Building on an original mixed‐methods study, this paper distinguishes based on survey data (N = 963) between those who perceive themselves as disadvantaged towards German peers and those who do not. The analysis rests on 19 semi‐structured interviews. The results emphasise migrant physicians' framing focussing on the country of arrival rather than a transnational perspective. Gender more than migrant status seems to account for career obstacles for some, whereas for Eastern Europeans especially both dimensions appear to reinforce one another. [ABSTRACT FROM AUTHOR]

This paper links recent theoretical work on capital markets to long-standing empirical debates in the employment literature. Recent models of firm behavior stressing problems of imperfect capital markets provide a foundation for interpreting evidence that the capital structure can predict labor demand decisions, even after one controls for firms' employment opportunities. The results indicate that there exists a negative impact of the capital structure upon employment. Authors have also demonstrated that as real wages or sales increase, employment decreases or increases. In order to incorporate financial considerations into a model of intertemporal labor demand authors proceeded in two steps. The first step reviews the solution of the firm's optimal finance decision problem. The second step integrates the results obtained into the solution of the firm's optimal factor demand problem. The results therefore support the conjecture that "capital structure", as defined in this paper, is associated with modified employment behavior on the part of German firms. Authors believe that these findings illustrate the potential richness of research programs to formalize tests of capital market imperfections and to measure their importance for factor demand of firms.

Using three waves of the Germany's individual-level panel data, this paper analyses whether there are any changes in the trust levels of East German migrants who move to the former Western German regions after the reunification. The results demonstrate that the duration of living in the West is positively associated with East German migrants' trust and that the labour market is the possible channel through which social trust is fostered. This finding suggests that trust is moulded through contemporaneous shocks or experiences. [ABSTRACT FROM AUTHOR]

How will countries handle idiosyncratic macroeconomic shocks under the single currency? Since the regional adjustment patterns currently prevailing within European currency unions are likely to prevail at the national level under the single currency, looking at the ways in which European countries react to internally asymmetric shocks today provides a good preview for the answer to that question. In this paper, we compare the USA with Germany, Italy and the UK, and with Canada, which is closer to Europe than the USA in its labour market and fiscal institutions. Europe's (and to some extent Canada's) model of regional response differs from that of the USA. Changes in regional real exchange rates are small in all countries. Outside of the USA, however, there is more reliance on interregional transfer payments, less on labour migration, and the pace of regional adjustment appears to be slower. If EMU aims at the same degree of economic and social cohesion that its constituent nations enjoy today, this suggests that its members may find it hard to resist the eventual extension of existing EU mechanisms of income redistribution -- a transfer union. We propose an alternative strategy based on a relaxed Stability Pact, further strictures against central EU borrowing, labour market and fiscal reform, and the issuance by individual member states of debt indexed to nominal GDP. [ABSTRACT FROM AUTHOR]

This paper contains a theoretical and empirical analysis of the labor supply of married women in the Federal Republic of Germany. The theoretical model is an intrafamily life cycle model. The empirical part uses individual census data of married women. The estimates are corrected for the selectivity bias using a two-stage probit method. Both dimensions of labor supply - hours and participation - are estimated along with an implicit estimation of the reservation wage function. The magnitude of the influence of economic variables and individual characteristics is evaluated and compared with other studies. [ABSTRACT FROM AUTHOR]

This paper deals with some problems of international factor mobility with respect to labor using the case of the German labor market. A quarterly macroeconometric model of the German labor market is developed and estimated. It consists of equations explaining labor supply and demand for men and women. Most equations distinguish between labor measured in persons and hours. After a determination of the variables of this model which are influenced by foreign employment two groups of foreign workers which differ according to their EC-member status are discussed separately. Because of several legal and institutional regulations a different treatment of each group with respect to employment policy is necessary. I or foreigners from outside the EC alternative reaction functions of the government are discussed and estimated. As the officially published unemployment rate is not comparable intertemporally because of foreign involuntary remigration during recession a new unemployment series including these persons is constructed and explained. The influence of foreign employment on wages is examined and two wage equations are estimated. Finally, some simulation results of an enforced remigration policy are reported. [ABSTRACT FROM AUTHOR]

The German vocational education system, especially its dual system of apprenticeship training, is often praised for providing vocational skills geared to current practices in specific occupations. Yet only about half of all Germans currently have jobs that match their vocational education. This paper uses data from the German Socio-Economic Panel, a nationally representative household panel study, to examine a variety of individual and structural level variables hypothesized to influence the likelihood of an individual being employed in a position that fits his or her vocational training. It also identifies factors that influence the probability that an individual moves from a job that does not fit his or her training to a position that does. Finally, the paper examines earnings differences between persons with varying types of vocational education and considers if these differences depend on whether or not an individual is employed in a job that fits. [ABSTRACT FROM AUTHOR]

Focusing on career mobility conceived as a sequence of job-shifts within and between firms, in this paper we compare Germany and Poland with regard to job-shift patterns found among men and women in these countries. The paper aims at testing a series of hypotheses on the comparative impact of labour-market segmentation (industrial sector, firm size, and social class) in welfare-capitalist and state-socialist systems. The hypotheses are tested against retrospective longitudinal data on job histories of the 1939-41 birth-cohorts from the 1981-2 German Life History Study and the 1972 Polish Life History Study. We find patterned differences between the two countries in regard to the effect of individual characteristics on career mobility, in regard to the impact of labour-market segmentation, and in regard to the effect of gender. To our knowledge, this is the first comparative investigation of this kind. Some implications of our findings for tracing the impact of current East European market reforms are also discussed. [ABSTRACT FROM AUTHOR]

Copyright of ifo Dresden Berichtet: Ueber Konjunktur, Struktur, Wirtschaftspolitik is the property of ifo Institute for Economic Research and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)