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1. Labour Market Trends and Active Labour Market Policy in the Eastern German Transformation Process 1990-1997. IAB Labour Market Research Topics no. 29.

Author

Institute of Employment Research, Nurenberg (Germany)., Bach, Hans-Uwe, Blaschke, Dieter, Blien, Uwe, Brinkmann, Christian, Fuchs, Johann, Gutsche, Matthias, Moeller, Ulrich, Kuhl, Jurgen, Spitznagel, Eugen, Steckel, Werner, Wiedemann, Eberhard, and Wolfinger, Claudia

Abstract

After German unification in 1990, more than 3 million jobs disappeared in eastern Germany and the obsolescence of eastern German capital stock became apparent. Further escalation of mass unemployment was successfully held in check; however, it soon became clear that labor market policies appropriate for western Germany were not, in and of themselves, enough to solve the employment problems in eastern Germany. Although it was clear that the main priorities in resolving eastern Germany's labor market problems after unification were to restructure the infirm economy, replace dilapidated infrastructure, and overcome the shock of unification, the details of the reconstruction and "catching-up" processes required by the eastern German economy were harder to define. The first step in the "catch-up" process was to institute East-West transfer payments. Other measures that have proved successful include the following: job creation measures designed to reach specific target groups; lump sum wage cost subsidies; provision of training to meet industry's needs; and establishment of labor promotion and structural development enterprises in eastern Germany. Training and qualifications have been deemed especially important because they are considered major incentives for development of more sophisticated jobs. (Twenty tables/figures and 73 references are included.) (MN)

Published
1998

2. Patterns of Enterprise Flexibility: IAB Establishment Panel Results, Western Germany, 1993-95.

Author

Institute of Employment Research, Nurenberg (Germany)., Bellmann, Lutz, Dull, Herbert, Kuhl, Jurgen, Lahner, Manfr, and Lehmann, Udo

Abstract

Data on flexibility in German companies were compiled through interviews and followed up annually. Employment trends in western Germany indicated a historic peak of 29.5 million employed in 1992 followed by a steady decline of about 1 million to 28.5 million in 1995. Employment losses continued in 1996; 1997 showed some signs of stability. Measurement of numerical flexibility of human resources showed an average job turnover of 7.9 percent per year for 1982-94 and considerable labor turnover at around 11 percent per year, with a slightly rising trend for 1993-95. Another dimension of flexibility of human resources and establishments, variation in working time patterns, was very large and increased as establishment size increased. Pay flexibility was inferred from wage differential trends, number of establishments bound by collective wage agreements, and wage gap between wages/salaries paid and collectively agreed wages. Wage differentials increased; the number of establishments bound to collectively agreed wages dropped; and the average wage gap fell. Technical and organizational change affected research, product innovation, and investment, which, in turn, required a new work organization, decoupled operating and working times, and additional staff qualifications. Corporate flexibility required employee training to produce higher skill levels. Because few establishments were integrated, fewer workers were affected. (Contains 54 references.) (YLB)

Published
1997

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