Firm-level Employment, Labour Market Reforms, and Bank Distress
IWH Discussion Papers,
We explore the interaction between labour market reforms and financial frictions. Our study combines a new cross-country reform database on labour market reforms with matched firm-bank data for nine euro area countries over the period 1999 to 2013. While we find that labour market reforms are overall effective in increasing employment, restricted access to bank credit can undo up to half of long-term employment gains at the firm-level. Entrepreneurs without sufficient access to credit cannot reap the full benefits of more flexible employment regulation.
IWH Alumni The IWH would like to stay in contact with its former employees. We...
Transferability of Skills across Sectors and Heterogeneous Displacement Costs
American Economic Review: Papers and Proceedings,
We use rich German administrative data to estimate new measures of skill transferability between manufacturing and other sectors. These measures capture the value of workers' human capital when applied in different sectors and are directly related to workers' displacement costs. We estimate these transferability measures using a selection correction model, which addresses workers' endogenous mobility, and a novel selection instrument based on the social network of workers. Our results indicate substantial heterogeneity in how workers can transfer their skills when they move across sectors, which implies heterogeneous displacement costs that depend on the sector to which workers reallocate.
Old Age Poverty and Satisfaction with Living Conditions in East and West Germany, 1995 and 2009
Wirtschaft im Wandel,
The current contribution presents poverty indicators for West and East Germany for the years 1995 and 2009. The analysis is based on the two corresponding waves of the GSOEP. We only consider households with at least one senior citizen aged 65 or above. Furthermore, we distinguish between male and female pensioners. In the first part the weighted equivalized household income is calculated as well as various statistical measures such as the 20%- and 80%-percentile, the 80/20-ratio and the 90/10-ratio of the income distribution of senior citizen households. In an additional step we also present and discuss the main sources of income such households have. In the second part of the contribution we focus on social indicators with respect to the satisfaction with income and the current living conditions as well as the expected situation in five years. As the results show, old age poverty has increased in both parts in Germany with East German women being an exception. With respect to the future, most elder people look optimistically into the future.