Search

Many people are relatively unsatisfied with the democratic system as it currently exists. In this empirical research note, the authors present evidence that German workers, who perceive their own pay or top managers’ pay as unfair, are on average significantly less happy with the democracy in Germany. Thus, fairness perceptions in the labour market and of income inequality seem to have spillover effects on the overall satisfaction with the democratic system. [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 - Empirical research has unambiguously shown that married men receive higher wages than unmarried, whereas a wage premium for cohabiters is not as evident yet. This paper aims to exploit the observed difference between the marital and the cohabiting wage premium in Germany to draw conclusions about the sources, typically explained by specialisation (e.g. husbands being more productive because their wives take over household chores) or selection (high earnings potentials being more attractive on the marriage market). Design/methodology/approach - The paper analyzes the cohabiting and the marital wage premium in Germany using a shifting panel design for marriages and move-ins from 1993 to 2004 in the German Socio-Economic PaneL With non-parametric matching models men who get married (treatment group I) are matched with cohabiting respectively single men (control groups) and men who move in with a partner (treatment group II) with singles. Findings - Matching reveals that higher wages are mostly due to positive selection - into marriage as well as into cohabitation. Supplementary analysis of intra-household time use suggests that specialization, if any, is part of the selection process from single to cohabitation to marriage. Originality/value - This is the first application of non-parametric matching in a comparative study of the marital and the cohabiting wage premium and thus provides new insights into their respective sources. It is also the first investigation of family-status-related wage premiums in Germany. [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 - 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 - 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]

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]