May Cities in De-Industrialized Regions Become Hot Spots for Attracting Cultural Businesses? The Case of Media Industry in Halle an der Saale (Germany)
Christoph Hornych, Martin T. W. Rosenfeld
European Planning Studies,
2010
Abstract
Policy-makers from many regions where old industrial structures in the field of manufacturing have collapsed are trying to stimulate entrepreneurial activities of businesses in the cultural industry. The question is whether this strategy could be successful. This article examines the strategy of supporting the sector of media industry (“MI”) by policy-makers in the region of Halle in East Germany, where a strong de-industrialization has taken place after the German reunification. Stimulated by the policy-makers' support measures, there actually was a remarkable development of MI. However, the number of MI firms and their employees did not further increase in recent years, after having reached a certain level. This illustrates the limits of political measures for turning a city's path of industrial development voluntarily.
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Monopsonistic Labour Markets and the Gender Pay Gap: Theory and Empirical Evidence
Boris Hirsch
Lecture Notes in Economics and Mathematical Systems,
No. 639,
2010
Abstract
This book investigates models of spatial and dynamic monopsony and their application to the persistent empirical regularity of the gender pay gap. Theoretically, the main conclusion is that employers possess more monopsony power over their female employees if women are less driven by pecuniary considerations in their choice of employers than men. Employers may exploit this to increase their profits at the detriment of women’s wages. Empirically, it is indeed found that women’s labour supply to the firm is less wage-elastic than men’s and that at least a third of the gender pay gap in the data investigated may result from employers engaging in monopsonistic discrimination. Therefore, a monopsonistic approach to gender discrimination in the labour market clearly contributes to the economic understanding of the gender pay gap. It not only provides an intuitively appealing explanation of the gap from standard economic reasoning, but it is also corroborated by empirical observation.
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Innovation and Skills from a Sectoral Perspective: A Linked Employer-Employee Analysis
Lutz Schneider, Jutta Günther, Bianca Brandenburg
Economics of Innovation and New Technology,
2010
Abstract
Science and engineering skills as well as management and leadership skills are often referred to as sources of innovative activities within companies. Broken down into sectoral innovation patterns, this article examines the role of formal education, actual occupation and work experience in the innovation performance in manufacturing firms within a probit model. It uses unique micro data for Germany (LIAB) that contain information about corporate innovation activities and the qualification of employees in terms of formal education, actual professional status and work experience. We find clear differences in the human capital endowment between sectors according to the Pavitt classification. Sectors with a high share of highly skilled employees engage in above average product innovation (specialized suppliers and science-based industries). However, according to our estimation results, across as well as within these sectors a large share of highly skilled employees does not substantially increase the probability of a firm being innovative.
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East German Labour Market
Hans-Ulrich Brautzsch
Wirtschaft im Wandel,
No. 11,
2009
Abstract
In the course of 2009, due to the great decline of production activities, the situation in the East German labor market deteriorated. The number of employees decreased and the registered unemployment rose slowly in the first half of this year. In this situation, reducing working time by extending short-time work turned out to be a very useful instrument. Besides, labour market policy measures were expended. Furthermore, labour supply, like in recent years, decreased. In 2010, the situation on the East German labour market will worsen due to low production growth.
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Germany’s Production of Export Goods: Human Capital Content Slightly Exceeds that of Imports
Hans-Ulrich Brautzsch, Udo Ludwig
Wirtschaft im Wandel,
No. 11,
2009
Abstract
In the decade before the present, world financial crisis exports out of Germany expanded enormously. This was caused by the growing world demand as well as the internationalization of the national production processes and favoured by the improving price competitiveness. At the same time, against the background of the tertiarisation of the economy, the qualification of employees has increased considerably. In our study, we investigate the changes of labour quality in the production of export goods using the standard open input-output model. Hereby, labour input is measured in terms of different formal qualification levels of the employees. The results are compared with the labour input for imported goods. We find out that the input of high qualified labour per unit of produced export goods exceeds only marginally the comparable input value of the imports. It should be mentioned that the comparison is strongly influenced by the assumption of identical production functions for both Germany and its trading partners.
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Produktivität – Alters- vs. Erfahrungseffekte
Lutz Schneider
Alterung und Arbeitsmarkt. Beiträge zur Jahrestagung 2007. Schriftenreihe der Deutschen Gesellschaft für Demographie, Band 3,
2008
Abstract
The contribution analysis the impact of the average age and experience of employees on the firm’s productivity using the linked employer employee data set from the IAB (LIAB). The inquiry is restricted to the manufacturing sector and distinguishes between a low-tech and a high-tech sector. We find an inverted u-shaped relationship between age and productivity. Experience supports productivity, however, the experience based effects are too small to compensate the negative impact of age at higher stages.
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The Manufacturing Sector in East Germany on a Path from De-industrialization to Re-industrialization: Are there Economically Sustainable Structures?
Gerhard Heimpold
Wirtschaft im Wandel,
20 Jahre Deutsche Einheit - Teil 1 -
2009
Abstract
The contribution comprises an analysis how the manufacturing sector in East Germany has developed in the post-transition period after 1990. A set of economic performance indicators is used. The analysis shows a considerable growth of gross value added and productivity. However, the growth of productivity occurred at the expense of employment. On average, in 2008, the East German manufacturing sector reached 4/5th of the productivity level of the West German level. As far as the endowment with growth determinants is concerned, the manufacturing industry in the New German Länder has undertaken considerable efforts to modernize its fixed capital stock. The endowment with human capital measured by the proportion of employees possessing a university degree is as high as in the western part of Germany. However, the investigation reveals a number of deficits, too. Data on Research and Development (R&D) expenditures and R&D staff in the manufacturing sector reveal, on average, lower R&D activities in the East German manufacturing sector. This is resulting from specific structures of the East German manufacturing sector: dominance of small firms, lack of large firms possessing headquarters and conducting own R&D. Complementary, the share of technology-driven industries is lower, and the proportion of labor intensive industries is larger in comparison with the West German manufacturing sector. In addition, an investigation of functional structures of employment reveals a proportion of employment in production functions which is above the West German average, whereas the opposite is the case with the proportion of employment in service functions. For further strengthening the East German manufacturing sector, structural change toward technology-intensive and human capital-intensive economic activities has to be continued.
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Municipal Enterprises as Shadow Budgets – How do they Affect the Actual Budgetary Situation of Germany´s Local Governments?
Peter Haug
Wirtschaft im Wandel,
No. 5,
2009
Abstract
Outsourcing of municipal tasks from the core budget to municipal enterprises tends to distort the perception of the actual financial position, net assets and results of operations of the German local governments. Excess supply or -demand of/for local public services might be possible consequences of this development. Hence, this article attempts to develop a more comprehensive picture of the municipal budgetary position by a simultaneous analysis of selected indicators. Furthermore, the methodological problems of the calculations are illustrated.
If these shadow budgets are taken into account, the total per capita revenues, -investments and -debts will increase by approximately one third to 50%. However, the share of the municipal employees belonging to the core administration in the total number of municipal employees is 75%. Although only about 22% of the expenditures for certain voluntary municipal tasks have been outsourced, there seems to be an upward trend.
The study also indicates that there are significant differences between Eastern and Western German cities. These include the higher revenues from municipal enterprises, the higher debts per capita and the higher expenditures on culture, sports, leisure services or the promotion of science in Eastern Germany.
The results should be interpreted carefully due to some shortcomings of the official statistics. For example, internal cash flows cannot be totally eliminated. Moreover, indirect municipal majority holdings as well as the municipal savings banks are not included in the results.
All in all, it remains to be seen whether the initiated reforms concerning the introduction of double-entry accounting into the local government budgeting system will help to achieve the ideal goal of a meaningful “consolidated financial statement” for the “city company”.
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Potentials of Innovation in Eastern Germany: High Levels in Urban Centres and Dynamics in Rural Regions
Jutta Günther, Claus Michelsen, Mirko Titze
Wirtschaft im Wandel,
No. 4,
2009
Abstract
Processes of innovation are usually complex, risky, and require a number of inputs, typically research and development (R&D) and a highly qualified workforce. The resulting inventions are the basis for patents that can be further developed into marketable products and real innovations. For example the spending for R&D, the number of highly skilled employees, and the number of patent applications can be seen as relevant indicators for the innovation power of firms. The sum of these measures can identify the innovation potential of whole regions. Because of the interdependence of these variables for the process of innovation, it is self-evident to summarize the measures in one index, which is presented in this article.
There are substantial differences between East German regions in terms of the identified innovation index for the period 2002 to 2006. The overall index indicates a north-south gap of the innovation potential. Bigger cities, such as Jena and Dresden, show up on top places. The view on the dynamics of the regional innovation potential (sub-index dynamics) reveals, however, that some more rural areas are very well off, for example Bernburg, Stollberg, Hoyerswerda, Dahme-Spreewald, Wernigerode and Bad Doberan. This is mainly caused by the innovative sphere of regional centres, but also due to the low base level of some regions.
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Changing patterns of employment
Cornelia Lang
Wirtschaft im Wandel,
No. 4,
2009
Abstract
In Germany, the typical pattern of employment is still an employee with open-ended full time contract (standard employment relationship). Nearly three out of four employed persons work in that type of employment. However, during the last years, a number of other employment models expanded in the labour market: part-time, temporary, short-term and marginal workers. Main reasons for that development are the effects of globalization, the structural change in modern economies (the increasing importance of the services sector), and changing preferences on the part of employees to achieve a better work-life-balance. The article deals with the rise of atypical employment relationships. We find that atypical work is a domain of female and young people. During the last years, atypical employment relationship in West and East Germany increased similarly due to globalization. Differences in employment patterns between East and West could be linked to employment behaviour and structural determinants.
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