Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions: Evidence from German Linked Employer–Employee Data

2011 ◽  
Vol 12 (4) ◽  
pp. 469-489 ◽  
Author(s):  
Thomas Cornelißen ◽  
Olaf Hübler
Keyword(s):  
Fixed Effects ◽  
Job Loss ◽  
Firm Heterogeneity ◽  
Previous Literature ◽  
High Wage ◽  
Large Firms ◽  
Job Stability ◽  
Job Duration ◽  
Employee Data

AbstractWe analyse the correlations between individual and firm fixed effects, and wage and job-duration functions. Our results for large firms suggest that low-wage firms tend to be stable firms, suggesting that lower wages can buy job stability. Furthermore, high-wage workers sort into the stable low-wage firms. Our interpretation is that high-wage workers have a higher wage to insure against job loss and can afford more easily to forgo wages in favour of job stability. This may provide an explanation of the puzzle identified in previous literature that high-wage workers are matched to low-wage firms.

scholarly journals A Distributional Framework for Matched Employer Employee Data

Econometrica ◽  
2019 ◽  
Vol 87 (3) ◽  
pp. 699-739 ◽  
Author(s):  
Stéphane Bonhomme ◽  
Thibaut Lamadon ◽  
Elena Manresa
Keyword(s):  
Firm Heterogeneity ◽  
Unobserved Heterogeneity ◽  
Structural Models ◽  
Static Model ◽  
Small Contribution ◽  
Nonlinear Interactions ◽  
Worker Mobility ◽  
Earnings Dynamics ◽  
Earnings Dispersion ◽  
Employee Data

We propose a framework to identify and estimate earnings distributions and worker composition on matched panel data, allowing for two‐sided worker‐firm unobserved heterogeneity and complementarities in earnings. We introduce two models: a static model that allows for nonlinear interactions between workers and firms, and a dynamic model that allows, in addition, for Markovian earnings dynamics and endogenous mobility. We show that this framework nests a number of structural models of wages and worker mobility. We establish identification in short panels, and develop tractable two‐step estimators where firms are classified in a first step. Applying our method to Swedish administrative data, we find that log‐earnings are approximately additive in worker and firm heterogeneity. Our estimates imply the presence of strong sorting patterns between workers and firms, and a small contribution of firms—net of worker composition—to earnings dispersion. In addition, we document that wages have a direct effect on mobility, and that, beyond their dependence on the current firm, earnings after a job move also depend on the previous employer.

Immigrant–Native Wage Gaps at Work: How the Public and Private Sectors Shape Relational Inequality Processes

2022 ◽  
Vol 49 (1) ◽  
pp. 79-129
Author(s):  
Eileen Peters ◽  
Silvia Maja Melzer
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Fixed Effects ◽  
Workplace Diversity ◽  
Public And Private ◽  
The Public ◽  
Second Generation Immigrants ◽  
Language Courses ◽  
First And Second Generation ◽  
Employee Data

We investigate how the institutional context of the public and private sectors regulates the association of workplace diversity policies and relational status positions with first- and second-generation immigrants’ wages. Using unique linked employer–employee data combining administrative and survey information of 6,139 employees in 120 German workplaces, we estimate workplace fixed-effects regressions. Workplace processes are institutionally contingent: diversity policies such as mixed teams reduce inequalities in the public sector, and diversity policies such as language courses reinforce existing inequalities in the private sector. In public sector workplaces where natives hold higher relational positions, immigrants’ wages are lower. This group-related dynamic is not detectable in the private sector.

Tingkat Kepemilikan Manajerial dan Nilai Perusahaan: Bukti Empiris pada Perusahaan Publik di Indonesia

2006 ◽  
Vol 1 (2) ◽  
pp. 135
Author(s):  
Henry Henry ◽  
Hamin Hamin
Keyword(s):  
Panel Data ◽  
Firm Value ◽  
Fixed Effects ◽  
Firm Heterogeneity ◽  
The Other ◽  
Managerial Ownership ◽  
Fixed Effects Model ◽  
Low Level ◽  
Other Hand ◽  
High Level

Initial analyses using panel data for none intercept model show a positive and significant effect of low level of managerial ownership on firm value ond negative and significant effect of high level of managerial ownership on firm value. This conclusion is dffirent when unobserved firm heterogeneity controlled using firm fixed effects model. Thefixed effects analyses suggest that managerial ownership doesn't have significant effect on firm value. The 2SLS analyses show that both managerial ownership and firm value are jointly endogenous. Managerial ownership has positively impacts on firm value, on higher firm value, on the other hand, inspires larger managerial ownershipKeywords: Managerial Ownership, Firm Yalue, Tobin's Q

scholarly journals Women in the German Workplace: What Facilitates or Constrains Their Claims-Making for Career Advancement?

2018 ◽  
Vol 7 (11) ◽  
pp. 214 ◽  
Author(s):  
Laura Luekemann ◽  
Anja-Kristin Abendroth
Keyword(s):  
Gender Gap ◽  
Fixed Effects ◽  
Career Advancement ◽  
Work Life ◽  
Gender Inequalities ◽  
Workplace Cultures ◽  
Ideal Worker Norm ◽  
Ideal Worker ◽  
Employee Data ◽  
The Ideal

To contribute to the understanding of gender inequalities within the workplace, this article explored gender differences in claims-making for career advancement and how they depend on workplace contexts based on unique German linked employer–employee data. Applying organizational fixed-effects models, we found that women were less likely than men to make claims, especially when they had children, and that this was related to their working fewer hours. The gender gap in claims-making further depended on workplace characteristics that influenced women’s ability and their feeling of deservingness to work in more demanding positions. Although claims by mothers’ increased in work–life supportive workplaces, highly demanding workplace cultures seemed to hinder women’s attempts to negotiate for career advancement. Thus, the dominance of the ideal worker norm was a relevant driver for the gender gap in claims-making. Whereas this gap in making claims was found to be only partially related to the workplace gender structure, the formalization of human resource practices, such as performance-based evaluations in the workplace, fostered mothers’ claims-making, indicating that these evaluations were used to legitimize their claims in the workplace.

scholarly journals Worker flows, reallocation dynamics, and firm productivity: new evidence from longitudinal matched employer–employee data

2020 ◽  
Author(s):  
Elena Grinza
Keyword(s):  
Fixed Effects ◽  
Function Method ◽  
Control Function ◽  
Firm Productivity ◽  
Employment Level ◽  
Worker Mobility ◽  
Worker Flows ◽  
The Impact ◽  
New Evidence ◽  
Employee Data

Abstract This article investigates the impact of the worker flows of a firm on productivity by using unique longitudinal matched employer–employee data. The analysis has split a firm’s total worker flows into three components: workers’ replacements (excess worker flows), hirings introduced to increase the firm’s employment level (net hirings), and separations of workers intended to decrease the firm’s workforce (net separations). This has allowed the impact of workers’ replacements, which represent the most prominent and compelling feature of worker mobility, to be isolated from the other two components. Endogeneity has been dealt with by using a modified version of Ackerberg et al.'s (2015, Econometrica, 83(6), 2411–2451) control function method, which explicitly accounts for firm-fixed effects. The main findings are that (i) excess flows have an inverted U-shape impact on productivity, (ii) net hirings foster firm productivity, and (iii) net separations damage it. The impacts are heterogeneous and vary widely on the basis of the types of replacements, the categories of workers involved, and the types of firms experiencing such flows. Overall, the findings of this article highlight the importance of reallocation dynamics to obtain better employer–employee matches, and call for a reconsideration of policies concerning the flexibility of the labor market.

The Effects of Parental Job Loss on Children’s Outcomes

2021 ◽  
Author(s):  
Jenifer Ruiz-Valenzuela
Keyword(s):  
Production Function ◽  
Fixed Effects ◽  
Job Loss ◽  
Negative Impact ◽  
Child Outcomes ◽  
Spillover Effects ◽  
Health Production ◽  
Negative Consequences ◽  
Before And After ◽  
The Impact

Severe economic downturns are typically characterized by a high incidence of job losses. The available evidence suggests that job losers suffer short-run earning losses that persist in the long run, are more likely to remain unemployed, suffer negative health impacts, and experience an increased likelihood of divorce. Job losses have therefore the potential to generate spillover effects for other members of the household, including children. This comes about because most of the negative consequences of job loss have a direct effect on variables that enter both the production function of cognitive achievement and the health production function. Workers who lose their jobs are likely different from those who remain employed in ways that are unobserved to the researcher and that might, in turn, affect child outcomes. Omitted variable bias poses a challenge to obtaining causal estimates of parental job loss. The way the literature has tried to approximate the ideal experiment has mainly depended on whether the child outcome under analysis could be observed both before and after the shock (i.e., both before and after parental job loss), normally relying on job losses coming from plant closures or downsizes and/or individual fixed effects. A survey of the literature shows that father’s job losses seem to have a detrimental impact on outcomes measuring children’s health and school performance. The impact of mother’s job losses on these same outcomes is mixed (including negative, null, and positive impacts). The impact on more long-term outcomes is less clear, with very mixed findings when it comes to the effect of parental job loss on college enrollment, and small impacts on earnings. In many studies, though, average effects mask important differences across subgroups: the negative impact of parental job loss seems to be mostly concentrated on disadvantaged households.

Unemployment and its scarring effect on wages in Germany: evidence from linked employer-employee data

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oskar Jost
Keyword(s):  
Administrative Data ◽  
Design Methodology ◽  
Firm Heterogeneity ◽  
Unemployment Duration ◽  
Content Type ◽  
Wage Penalties ◽  
Scarring Effects ◽  
Employee Data ◽  
Practical Implications

PurposeAssess and compare scarring effects of unemployment in Germany to other countries and to consider firm heterogeneity.Design/methodology/approachThe author uses linked employer-employee data to analyze the effect of unemployment and its duration on future wages in Germany. Using administrative data on workers and firms in Germany and considering registered and unregistered unemployment episodes, the results show long-lasting wage losses caused by unemployment incidences. Furthermore, the estimations indicate that unemployment duration as well as selectivity into firms paying lower wages is of particular relevance for the explanation of wage penalties of re-employed workers.FindingsUnemployment causes massive and persistent wage declines in the future, which depend on the unemployment duration. Furthermore, reduced options of unemployed workers and selectivity in firms contribute to a large part of unemployment scarring.Practical implicationsFindings are relevant for current debates on unemployment and can help design measures to avoid huge costs of unemployment.Originality/valueThis paper analyses long-term unemployment scarring by considering not only unemployment duration but also selectivity in firms and its effect on the scarring effect.

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