Central Banks, Trade Unions and Reputation – Is there Room for an Expansionist Manoeuvre in the European Union?
Toralf Pusch, A. Heise
Journal of Post Keynesian Economics,
2010
Abstract
It is now a few years since the introduction of the common currency, and Europe is still experiencing high unemployment. The conventional logic attributes this problem to flaws in the labour market. In this article we look at the changes that occur if labour unions and the Central Bank have different options to choose from in a climate of uncertainty. In a single-stage game the most probable outcome is a high unemployment rate. Results change dramatically if the game is repeated. However, this effect does not occur if the Central Bank puts a too high weight on price stability. Secondly, if the trade unions do not possess the capability for coordinating and moderating their wage claims, a full employment equilibrium is out of range.
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Children, Career, and Compromises: To what Extent does Offspring Affect Labour Force Participation and Career Opportunities of Women in Germany?
Alexander Kubis, Lutz Schneider, Marco Sunder
Wirtschaft im Wandel,
No. 11,
2009
Abstract
Germany faces a substantial challenge from demographic change in the forthcoming decades. While large cohorts reach retirement age, the working-age population shrinks. One option to curtail economic effects of this imbalance is to increase female labour force participation. The study uses data from the German Socio-Economic Panel (GSOEP) to analyze the impact of children on careers of women in East and West Germany, respectively in terms of participation and realized wages or occupational prestige. Results indicate strong regional differences, with East German mothers returning much faster to the labour market than their western peers. Participation rates – especially full-time employment – of the latter group remain permanently below levels of childless women. Careers of East German mothers are hampered by a higher risk of unemployment. The mother wage gap is relatively large among western mothers and remains so even after taking into account previous experience and unobserved heterogeneity. The study documents a negative and statistically significant relationship between children and occupational prestige only for West Germany. The observed career differences between mothers in both parts of the country may be rooted in a larger supply of institutionalized child-care arrangements in East Germany.
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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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Low Wages in the Service Sector in Eastern Germany: Extent and Reasons
Joachim Wilde, Christian Keller
Wirtschaft im Wandel,
No. 11,
2008
Abstract
In recent years, employment has grown noticeably in Germany. Although this is good news, some people criticize that many jobs are low-paid, i.e. the wage is less than two thirds of the medium wage. An eye-catching example is the service sector in Eastern Germany. However, a systematic analysis of this sector in Eastern Germany is missing until now. The article closes this gap in the literature.
Concerning the whole service sector in Eastern Germany, about 25 percent of the employees get a low (gross) wage. This is not much more than the average of all sectors. However, in some branches of the service sector, much more employees get low wages. More than 40% of the employees of retail trade, restaurant business and services near to companies (“unternehmensnahe Dienstleistungen”) are paid low. The probability to get a low wage is significantly higher for women and the so-called minijobbers.
Since the tax system adjusts differences, all calculations were also done for net wages. On the one hand, the part of low-paid workers decreases for all branches and all subpopulations. On the other hand, the probability to get a low wage does not differ anymore between minijobbers and full-time employees. Thus, the tax system does not only reduce low-paid employment, it also changes its structure.
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Comparing the training activities of unemployed and full-time employed people
Birgit Schultz, Joachim Wilde
Zeitschrift für Arbeitsmarktforschung,
No. 1,
2008
Abstract
Many empirical studies for Germany consider either the training activities of the unemployed or those of employees. However, a comprehensive comparison of both groups had not been conducted until now. The paper closes this gap. Using data from the latest time-use survey (Zeitbudgeterhebung) of the Federal Statistical Office, the amount of training undertaken by the two groups is compared. Furthermore, the types of activities that are made use of in particular are described. Heterogeneity due to different relevant socioeconomic characteristics in the two groups is eliminated by applying a matching procedure. The findings demonstrate that only 49% of unemployed people participate in any kind of training activity off the job. In the case of full-time employment 59 % would take part. Concerning the average expenditure of time per week the difference is reversed, i.e. the expenditure of time is greater during unemployment. However, a large proportion of the training activities undertaken by the unemployed comprises general training, e.g. by reading books or watching television. Furthermore, the result is driven by a different potential of time that can be used for training activities off the job. In relation to this potential of time, the amount of training activity is still smaller during unemployment.
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Vergleich der Weiterbildungsaktivitäten von Arbeitslosen und Vollzeiterwerbstätigen
Birgit Schultz, Joachim Wilde
IWH Discussion Papers,
No. 9,
2007
Abstract
Many empirical studies consider either training activities of the unemployed or training activities of the employees in Germany. However, a comprehensive comparison of both groups is missing. The paper closes this gap. Using data of the latest time use survey (Zeitbudgeterhebung) of the Federal Statistical Office, the amount of training is compared for both groups. Furthermore, it is described which types of activities are made use of in particular. Heterogeneity due to different relevant socioeconomic characteristics in the two groups is eliminated by the appliance of a matching procedure. Findings demonstrate that only 49% of the unemployed persons participate in any kind of training activities off the job. In case of the full-time employment 59 % would take part. Concerning the average expenditure of time per week the difference turns around, i.e. the expenditure of time is higher during unemployment. However, a high proportion of the training activities of the unemployed falls upon general training, e.g. by reading books or watching TV. Furthermore, the result is driven by a different potential of time that can be used for training activities off the job. Relating to this potential of time the amount of training activities is still lower during unemployment.
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Zeitpotential für berufliche Weiterbildung von Arbeitslosen wenig genutzt
Joachim Wilde, Birgit Schultz
Wirtschaft im Wandel,
No. 5,
2007
Abstract
In general, unemployed persons spend more time on further training than full-time employees. Using data of the latest time use survey (Zeitbudgeterhebung) of the Federal Statistical Office, this study analyzes whether this higher potential of time is being used or not. Furthermore, it describes which types of activities are made use of in particular. Heterogeneity due to different relevant socioeconomic characteristics in the two groups is eliminated by the appliance of a matching procedure.
Findings demonstrate that only around 15 % of the unemployed persons participate in further training activities off the job. In case of the full-time employment just under 40 % of the persons would take part. Relating to the average expenditure of time per week the difference decrease clearly. However, altogether the expenditure of time is not higher during unemployment.
A selection of subsamples points out different results, i.e. in some subsamples the expenditure of time for further training is larger during unemployment. However, in the subsample of low skilled persons these results are mainly caused by activities like hearing radio or watching TV. Thus, it is doubtful whether the higher expenditure of time qualifies for the primary labour market.
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Working time arrangement in the EU from the viewpoint of the employees: Results from the ad hoc labour market surveys
Cornelia Lang
Wirtschaft im Wandel,
No. 4,
2006
Abstract
Despite the general improvement in the EU’s labour market performance, there are still large differences between individual countries. And there are differences in some fields between the pre-enlargement EU Member States and the recently acceded Member States. One explanation for these differences may be the predominance of former socialist countries with centrally planned economies among new member states. The article deals with the results of the ad hoc labour market survey of the European Commission. One of its subjects is the flexible use of labour. The main findings are: A working week of between 35 and 40 hours, distributed more or less evenly over the five working days, is the rule for the majority of employees. Part-time work is still dominated by women. Overtime is relatively common for most of the full-time employed. When asked if they would be prepared to accept more flexible working time, the interviewees do not favour all possible types of flexibility to the same extent. The most favoured model is either lengthening or shortening the regular working day. In the former socialist countries people work longer hours and they are more flexible with respect to how far they have to travel and the hours they have to work in order to keep their job.
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Evaluation of Further Training Programmes with an Optimal Matching Algorithm
Eva Reinowski, Birgit Schultz, Jürgen Wiemers
Swiss Journal of Economics and Statistics,
2005
Abstract
This paper evaluates the effects of further training on the unemployment duration of different groups of persons representing individual characteristics and some aspects of the economic environment. The Micro Census Saxony enables us to include the employment history as a proxy for unobserved variables and to avoid Ashenfelters Dip. We employ an optimal full matching assignment, which is superior to greedy pair matching in the sense that it avoids the loss of observations due to the design of the algorithm. Overall, we find empirical evidence that participation in further training programmes results in even longer unemployment, with only gradual differences.
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Evaluation of Further Training Programmes with an Optimal Matching Algorithm
Eva Reinowski, Birgit Schultz, Jürgen Wiemers
IWH Discussion Papers,
No. 188,
2004
Abstract
This study evaluates the effects of further training on the individual unemployment duration of different groups of persons representing individual characteristics and some aspects of the economic environment. The Micro Census Saxony enables us to include additional information about a person's employment history to eliminate the bias resulting from unobservable characteristics and to avoid Ashenfelter's Dip. In order to solve the sample selection problem we employ an optimal full matching assignment, the Hungarian algorithm. The impact of participation in further training is evaluated by comparing the unemployment duration between participants and non-participants using the Kaplan-Meier-estimator. Overall, we find empirical evidence that participation in further training programmes results in even longer unemployment duration.
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