Increasing Pressure on East German Labor Market for Skilled Labor
Herbert S. Buscher
Wirtschaft im Wandel,
No. 11,
2012
Abstract
After a short break, the discussion of a possible labor market shortage for skilled and high skilled workers revived in the public debate. The paper evaluates the results of the latest IAB establishment survey for East German industrial firms with respect to planned employment within the next two years and the associated problems expected by the firms. The analysis distinguishes between the location of the firm, the size of the firms, measured by the number of employees, as well as with respect to the branch of industry the firm belongs to.. The results can be interpreted in a sense that actually there is no severe shortage of skilled labor at a large scale, but in the near future it will become more difficult for firms to find qualified employees.
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Firm level determinants of innovation: small firms with high potential in East Germany
Jutta Günther, Philipp Marek
Wirtschaft im Wandel,
No. 7,
2011
Abstract
Innovations in the sense of new products and production processes are crucial drivers of the economic development in advanced economies. After a phase of massive technological renewal in East Germany, characterized by much a higher rate of innovators in East than in West Germany, firms in East Germany have to compete with original innovation activities. The paper outlines the innovation activity in East and West Germany and investigates the determinants of product and process innovation within a multivariate analysis using the IAB establishment panel.
The empirical study shows that firms in manufacturing industry in East Germany are quite active in innovation activities in the year 2008. As regards the share of innovative firms there are no substantial differences between East and West Germany. The regression analysis shows that R&D is a significant determinant of innovation in East and West for all types of innovation. In East Germany, further education activities for employees also show a statistically significant impact on innovation. A major difference between East and West could be found for the firm size. In East Germany size has no significant impact on innovation while in West Germany size clearly matters. Different from West Germany, small firms (10 up to 49 employees) in the East have a significantly positive impact on product innovations in the sense of market novelties.
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Betriebsräte und betriebliche Produktivität
Steffen Müller
Schmollers Jahrbuch,
No. 1,
2011
Abstract
Employee participation via works councils is at the heart of the industrial relations in Germany. Despite considerable research, there is still no consensus on the effect works councils exert on establishment productivity. I estimate the statistical relationship between works council existence and establishment productivity using the most recent information from the IAB establishment panel and find that works council existence is related with a nine percent higher productivity. Based on the results of earlier studies, it is argued that the productivity effect of works councils exceeds the estimated statistical relationship.
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Capital Stock Approximation with the Perpetual Inventory Method: STATA Code for the IAB Establishment Panel
Steffen Müller
FDZ-Methodenreport, H. 02,
No. 2,
2010
Abstract
The IAB Establishment Panel contains no direct information on establishments’ capital stock. This report presents some advice in implementing a capital stock approximation by the perpetual inventory method as proposed by Müller (2008). STATA code is provided in the appendix.
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Capital Stock Approximation using Firm Level Panel Data: A Modified Perpetual Inventory Approach
Steffen Müller
Jahrbücher für Nationalökonomie und Statistik,
No. 4,
2008
Abstract
Many recent studies exploring conditional factor demand or factor substitution issues use firm level panel data. A considerable number of establishment panels contains no direct information on the capital input, necessary for production or cost function estimation. Incorrect measurement of capital leads to biased estimates and casts doubt on any inference on output elasticities or input substitution properties. The perpetual inventory approach, commonly used for long panels, is a method that attenuates these problems. In this paper a modified perpetual inventory approach is proposed. This method provides more reliable measures for capital input when short firm panels are used and no direct information on capital input is available. The empirical results based on a replication study of Addison et al. (2006) support the conclusion that modified perpetual inventory is superior to previous attempts in particular when fixed effects estimation techniques are used. The method thus makes a considerable number of recently established firm panels accessible to more sophisticated production function or factor demand analyses.
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Research and Development: important source for product innovation also in East Germany
Jutta Günther, François Peglow
Wirtschaft im Wandel,
No. 9,
2007
Abstract
The development and successful introduction of new products is a fundamental feature of a modern knowledge society. After completion of the retrieving technological renewals in East Germany, businesses in the newly-formed German states have to stand up to the competition for marketable concepts and ideas. In doing so, the structural particularities on the strength of transformation are still in force and besides, the embedding of East Germany between high-tech in the West and catching up countries in the East constitutes an additional challenge. This article outlines the innovation activities of East German companies and pursues in the framework of an multivariate analysis to follow up intra-corporate determining factors for product innovations The empirical analysis, employing the IAB establishment panel, shows an active share of innovation participation of companies belonging to the manufacturing industry in East Germany during the years 2002 and 2003. The proportion of companies with product innovation in the newly-formed German states even lies slightly above the reference value for West Germany. Especially companies with an own Research and Development (R&D) department are introducing new products twice as much as companies without an R&D division. The regression analysis proves that own R&D represents the strongest driving force for product innovations in regard to input factors. Moreover, continuing operational education can also be attested a positive impact on innovation activities and emphasizes concurrently the meaning of long-life learning. In reference to business specific characteristics, it stands out that foreign equity participation imposes a significant negative impact of on product innovations. This result, deserving further analysis, indicates the phenomenon of so-called subcontracting.
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The State of Convergence in SADC
Tobias Knedlik, F. Povel
Monitoring Regional Integration in Southern Africa Yearbook, Vol. 7,
No. 7,
2007
Abstract
The Southern African Development Community (SADC) Treaty established an integration agenda for the grouping culminating in the introduction of a common currency by 2018. By determining the degree of macroeconomic convergence across countries it becomes possible to draw conclusions with respect to the feasibility of the envisaged integration agenda of a regional integration scheme. In order to test for convergence among southern African countries the panel unit root test proposed by Im, Pesaran, and Shin (2003) is conducted. The results of the convergence analysis suggest that countries converge towards South Africa.
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Mikroökonometrische Evaluation der ökonomischen Wirkungen betrieblicher Mitbestimmung - Möglichkeiten und Grenzen des Matching-Ansatzes
Birgit Schultz
Jahrbücher für Nationalökonomie und Statistik,
No. 5,
2006
Abstract
The evaluation of economic effects of workers participation is not simple from the methodical point of view because of specific characteristics of establishments with works councils. Especially recent studies show contradictory results. In this study problems are pointed out, discussed, and options for solution are presented on the example of workers participation in East German establishments of industry and construction by the IAB-Establishment Panel.
An optimal matching-algorithm which supplies good matching-results for small samples to assign 'statistical establishment-twins' is applied. But by reason of very short primarily spells it can only calculate short time effects. Therefore, the matching method is additionally used to construct longer observation periods. By this new application establishments with recently founded works councils are matched with so called 'proxy establishments' with existing works councils. As a result short observation periods are prolonged and information about long-term effects can be given.
The effects on productivity, profitability and qualification level of employees show neither in short-term nor in long-term a significant impact on workers' participation.
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Options and Limits of the Matching Approach – An Application to Workers Participation
Birgit Schultz
IWH Discussion Papers,
No. 15,
2006
Abstract
The evaluation of economic effects of workers participation is not simple from the methodical point of view because of specific characteristics of establishments with works councils. Especially recent studies show contradictory results. In this study problems are pointed out, discussed, and options for solution are presented on the example of workers participation in East German establishments of industry and construction by the IABEstablishment Panel. An optimal matching-algorithm which supplies good matching-results for small samples to assign ‘statistical establishment-twins’ is applied. But by reason of very short primarily spells it can only calculate short time effects. Therefore, the matching method is additionally used to construct longer observation periods. By this new application establishments with recently founded works councils are matched with so called ‘proxy establishments’ with existing works councils. As a result short observation periods are prolonged and information about long-term effects can be given. The effects on productivity, profitability and qualification level of employees show neither in short-term nor in long-term a significant impact on workers’ participation.
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