Who Invests in Training if Contracts are Temporary? - Empirical Evidence for Germany Using Selection Correction
IWH Discussion Papers,
This study deals with the effect of fixed-term contracts on work-related training. Though previous studies found a negative effect of fixed-term contracts on the participation in training, from the theoretical point of view it is not clear whether workers with fixed-term contracts receive less or more training, compared to workers with permanent contracts. In addition to the existing strand of literature, we especially distinguish between employer- and employee-financed training in order to allow for diverging investment patterns of worker and firm. Using data from the German Socio-Economic Panel (GSOEP), we estimate a bivariate probit model to control for selection effects that may arise from unobservable factors, affecting both participation in training and holding fixed-term contracts. Finding negative effects for employer-sponsored, as well as for employee-sponsored training, leads us to conclude that workers with fixed-term contracts do not compensate for lower firm investments.
Business Cycles and FDI: Evidence from German Sectoral Data
Review of World Economics,
Globalization has affected business cycle developments in OECD countries and has increased activities of firms across national borders. This paper analyzes whether these two developments are linked. We use a new firm-level data set on the foreign activities of German firms to test whether foreign activities are affected by business cycle developments. We aggregate the data by the sector of the reporting firm, the sector of the foreign affiliate, and the host country. Data are annual and cover the period 1989–2002. We find that German outward FDI increases in response to positive cyclical developments abroad and in response to a real depreciation of the domestic currency.
Business services in East Germany - an update
Wirtschaft im Wandel,
The article presents the results of the German service sector statistic 2001 for company oriented services in the New Länder (without Berlin), which have been derived from data of the regional statistical offices. The article can be regarded as an update of an earlier version (see “Wirtschaft im Wandel”, 12/2003, p.342-349). Fundamental results are: 1. Compared to 2000, the New Länder’s proportion of Germany’s total revenue and employment in company oriented services has, compared to 2000, slightly increased, but remains rather small. 2. The profitability of East German companies has deteriorated, measured by total expenses per sales unit. Partially this might be due to the increased number of businesses. 3. Last evaluation’s assumption, that East German company’s labor productivity (gross value added per employees) is half of the West German’s, has been proofed in this actual evaluation. An illustration of reasons is not being provided since it has been discussed extensively in the first evaluation.