Too old to work? The impact of age on productivity
Lutz Schneider
Wirtschaft im Wandel,
No. 11,
2006
Abstract
Due to the public debate on the raising legal re-tirement age in Germany labor market research has recently focused on an explanation of the low labor market participation rate of elders. In the economic discussion the low participation is pri-marily explained by a supposed imbalance of la-bor costs and returns for old workers. Whereas wages rise with increasing age, the individual productivity seems to fall beyond a certain age. Gerontological research supports this view, since it documents an age-driven decline of physical and certain mental abilities. The study empirically evaluates the thesis of a diminishing individual productivity at higher ages. The analysis is done on the basis of a new dataset for German firms of the manufacturing sector. Using these data the effect of the employee’s age on a firm’s productiv-ity is estimated and conclusions on the job per-formance of workers at different ages are drawn. The performed cross-section-regressions of the years 2003 and 2000 indicate an inverted u-shaped age-productivity-profile. The 25-44 year olds turn out to be the most productive, the share of the over 44 year old workers seems to dampen productivity. However the 15-24 age group makes the lowest productivity contribution. Moreover a positive effect of firm-related experience can be found. Due to elders’ higher stock of firm specific human capital this might at least partly compen-sate the unfavorable effects of aging.
From a political perspective these findings sup-port the view, that an increasing legal retirement age will not automatically lead to a remarkable extension of the labor demand for older people. In addition to legal aspects the wage schemes and the actual productivity profiles in higher age have to be linked more closely together.
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Vielfältigkeit eines Hybridberufes: Mechatronikfacharbeiter nach der Ausbildung
Simone Scharfe, K. Tautenhahn
External Publications,
No. 8,
2006
Abstract
In the period from 2002 to 2004, 302 skilled workers successfully concluded their education as a mechatroniker, microtechnologist, chemical laboratory assistant, physics laboratory assistant or varnish laboratory assistant within the scope of the model project "compound education in new professions of high technology" which was initiated by the Saxonian State Ministry of Economy and Labor. The model project and the scientific monitoring were promoted from means of the European Social Fund and complementary state means of the Free State of Saxony.
Some months after the completion of their education, the graduates were questioned by the scientific monitoring about different aspects concerning the model project and its evaluation, points of interests have for example been:
§ the retrospective assessment of the education and the model project,
§ the estimation of their chances in the job market,
§ the professional whereabouts as well as
§ the evaluation of their knowledge in terms of its suitability for daily use.
In this article, the results of the last both points in the view of the mechatroniker, which are the biggest group in the model project with 180 graduates, are picked out as a central theme. Because the mechatronikers should combine the branches of the mechanics and the electronics in the second part of the result representation the actual operational areas of the former trainee are examined.
ich hätte evtl. einiges anders formuliert: (der Satzbau klingt sonst so eingedeutscht)
The article mainly refers to the last two points. Also, the view is limited to the results of the mechatroniker. Covering 180 graduates, it has been the largest group within the model project.
The intention of the new occupational image of the mechatroniker was a bridging of mechanics and electronics. Therefore, it is examined in the second part of this article, to which extend this bridging is reflected in the actual operational areas of the former trainees.
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Vernetzung und einzelwirtschaftliche Effekte von Unternehmen der Kunststoff- und Biotechnologiebranche in Mitteldeutschland - eine Analyse am Beispiel der Clusterinitiativen „Chemie/Kunststoffe“ und „Biotechnologie/Life Sciences“
Walter Komar
IWH-Sonderhefte,
No. 2,
2006
Abstract
According to theoretical implications the success of enterprises benefits from co-operation in clusters and networks. Studies of cluster and network processes show this for the industries chemistry/plastics and biotechnology/Life Sciences in Central Ger-many. Therefore enterprises which are organized in networks have better economic characteristics. Estimations of the productivity of firms using co-operation-based and non-co-operation-based factors as independent variables reveal a significantly positive influence of the propensity to co-operate as well as networking. In this regard scientific institutions and universities located in the region of firms play an important role. From this analysis it can be generalized and concluded, also concerning other industries, that networks emerge automatically under certain conditions. Nevertheless their creation and development should be encouraged, e.g. by efficiency strengthening of public research and university education as well as the intensification of co-operation and networking between the scientific and the corporate sector. This can promote the technology and human capital transfer.
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Kooperation, Vernetzung und Erfolg von Unternehmen - die Biotechnologiebranche
Walter Komar
List Forum für Wirtschafts- und Finanzpolitik,
No. 2,
2005
Abstract
According to theoretical implications the succes of enterprises benefits from co-operation and integration into networks. Enterprises of the biotechnology sector in particular have a high propensity to build up co-operations. Estimations of the growth of firms using co-operation-based and non-co-operation-based factors as independent variables reveal a significantly positive influence of the propensity of co-operation as well as networking. In this regard scientific institutions and universities located in geographical proximity of firms play an important role. From this analysis it can be generalized and concluded, concerning other industries too, that networks emerge automatically under certain conditions. Nevertheless their creation and development should be encouraged, e.g. by efficiency incentives for public research and education of universities as well as an intensification of co-operation and networking between the scientific and the corporate sector. This can promote the technology and human capital transfer.
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Promotion of investment in East Germany - Results of an empirical study of effectiveness
Harald Lehmann, Andreas Stierwald
Wirtschaft im Wandel,
No. 5,
2004
Abstract
In Germany considerable amounts of public funds are being spent on business development programs. In order to do so economic reasoning is needed. In particular the programs for supporting investment lack microeconometric empirical evaluation. To close this gap the special program „Gemeinschaftsaufgabe zur Verbesserung der regionalen Wirtschaftsstruktur“ (GA) is exemplarily analyzed. This program is intended to strengthen the capital stock of the East German economy, so firms of the East German manufacturing industries will be studied. A comparison of the two fundamental methods for microeconometric evaluation shall demonstrate the general problems in analyzing the effectiveness of development programs. The matching estimator provides more stable results then a sample selectivity model. The results suggest that the GA generates considerable extra investment activities.
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Differences between German regions with respect to growth factors: a comparison based on a cluster analysis
Franz Kronthaler
Wirtschaft im Wandel,
No. 13,
2003
Abstract
The objective of the paper is to examine regional disparities within Germany with respect to the endowment with growth factors. The study is based on a cluster analysis. Growth factors considered are innovation activity, human capital, private and public capital, and regional concentration. The results show that German regions can be classified in ten clusters with different characteristic profiles. Eight clusters consist of West German regions and two clusters comprise East German regions. There is no cluster which contains both West and East German regions. Regarding the East German clusters more precisely it can be shown that the endowment with growth factors in most of East German regions is low. This result applies also for several West German regions. However there are few East German regions particularly those with important agglomerations which have a more favourable endowment with growth factors. Nevertheless also in those regions still several weaknesses in the endowment with growth factors exist.
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Standortbedingungen der Biotechnologiebranche - Eine Analyse zur Identifikation von Erfolgsfaktoren für Biotechnologiefirmen und Bioregionen
Walter Komar
IWH Discussion Papers,
No. 176,
2003
Abstract
The paper analyzes the factors, which are important for the success of biotechnology companies and bio regions. For these purposes the local conditions of an advanced bio region are compared with a not so advanced bio region in a bench mark approach. The significant factors for the success of biotechnology companies and bio regions are identified by the logistic regression analysis. The result is that a bundle of factors for the development of biotechnology companies and bio regions is important. Therein the supply of human capital, networks and public research in the region play an outstanding role.
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Markets for Bank Subordinated Debt and Equity in Basel Committee Member Countries
Reint E. Gropp, Jukka M. Vesala
BCBS Working Papers, No. 12,
No. 12,
2003
Abstract
This Basel Committee working paper is a study of the markets for banks' securities in ten countries (Belgium, France, Germany, Japan, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom, and the United States). It aims at contributing to the assessment of the potential effectiveness of direct and indirect market discipline. This is achieved through collecting a rich set of data on the detailed characteristics of the instruments used by banks to tap capital markets, the frequency and size of their issuance activity, and the share of issuing banks in national banking systems. Further, information is collected on the amounts of debt and equity outstanding and about trading volumes and liquidity. Developments over the period from 1990-2001 are evaluated.
The paper focuses on subordinated bonds among banks' debt instruments, because they are the prime class of uninsured instruments suited to generate market discipline and have been proposed by some observers as a mandatory requirement for banks.
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Public Research Institutions in East Germany: a Promising Base for Economic Upturn?
Gerhard Heimpold, Martin T. W. Rosenfeld
Wirtschaft im Wandel,
No. 15,
2001
Abstract
In the 1990s a lot was done to strengthen public research efforts in East Germany. The main indicators relating to public research reflect an ambivalent picture. Investment by universities and public research institutions outside the universities reached a higher level than in West Germany. However, there remains an East-West gap with respect to the capital stock. The per capita stock of R&D staff in the university sector reached almost the level in the old Länder. With respect to the university R&D in engineering sciences, among those fields of university research which are particularly business-related, per capita stock of staff as well as per capita investment in the Eastern German Länder are above the West German level. In university natural science the East-West pattern of the R&D input factors mentioned is reversed. The receipts of the universities acquired from research contracts, which may be used as an indicator to assess the quality of public research, reveal shortcomings. These shortcomings, though these have been partly caused by the transitional situation in East Germany`s universities, where new institutions were built up only gradually. The R&D institutions outside the universities are obviously better equipped than such institutions in West Germany.
The visible advantages offered by public sector research institutions in East Germany might be used much more intensively to foster the economic reconstruction in East Germany. In parallel with this, the remaining shortcomings of public R&D in East Germany should be eliminated. If reductions in universities´ capacities (due, for instance, to a declining number of persons who have a university entrance qualification) seem to be inevitable, the consequences of such restrictions should be carefully reconsidered.
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Economic Development in Saxony-Anhalt: empirical results and policy recommendations
Franz Barjak, Peter Franz, Gerhard Heimpold, Martin T. W. Rosenfeld
Wirtschaft im Wandel,
No. 3,
2001
Abstract
Though the basic economic problems are still of the same kind all over East Germany, partially considerable regional differences exist in respect to the conditions for further economic development. Therefore, detailed empirical analyses for the individual Länder and their sub-regions are necessary making economic policy recommendations. The following contribution deals with this task taking Saxony-Anhalt as an example.
A multitude of indicators is used to bring out the specific strengths and weaknesses of the economy of this state (Land) and its sub-regions. The outstanding strength of Saxony-Anhalt are the high private investment outlays which served to build a modern capital stock during the past ten years. Another fundamental strength of the Land are the universities and public research institutions. Besides these unambiguous strengths some ‘ambivalent’ growth factors exist which are characterized by strengths as well as by weaknesses. Such ‘ambivalent’ growth factors are the infrastructure and the situation of important sectors and branches of economic activity. The weaknesses of Saxony-Anhalt’s economic structure find expression especially in its low supply with human capital and entrepreneurial initiative as well as in the few research and development efforts of its firms.
The aforementioned strengths of the Land are reflected insufficiently in its economic output. Consequently some economic policy measures are proposed to bring about an improvement: Amongst other things Saxony-Anhalt should develop a clear idea of its economic development (Leitbild). Such a Leitbild could be related to the Land’s strengths or to the elimination of its major weaknesses. This also would facilitate a concentrated use of the different economic policy instruments. The latter shouldn’t only be concentrated on singular economic growth factors but also spatially, on the economically stronger sub-regions, as this can lead to larger growth effects for the entire Land. The good provision with public research institutions in Saxony-Anhalt should be used to bring about an improvement of the economic structure to a larger extent than until now. This could be done for example by means of a further strengthening of applied research vs. basic research, possibly via orienting the public research more towards the existing branches of economic activity. Finally, the Land should intensify its efforts to increase the entrepreneurial initiative in Saxony-Anhalt, e. g. by means of introducing courses in economics in its schools.
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