Reevaluating the German labor market miracle

2020 ◽  
Vol 21 (2) ◽  
pp. 139-179
Author(s):  
Michael C. Burda ◽  
Stefanie Seele

AbstractFrom 2003 to 2018, employment in Germany increased by 7.3 million, or by 19.3 % – growth not observed since unification. This “labor market miracle” was marked by a persistent and significant expansion of both part-time and low-wage jobs and a deterioration in pay for these jobs, while total hours hardly increased; overall wage growth returned only after 2011. These developments followed in the wake of the landmark Hartz reforms (2003–2005). A modified framework of Katz and Murphy (1992) predicts negative correlation of wages with both relative employment and participation across cells in the period following these reforms. In contrast, wage moderation alone should generate positive association of wages and participation. Our findings are most consistent with a persistent, positive labor supply shock at given working-age population in a cleared labor market. An alternative perspective of labor markets, the search and matching model, also points to the Hartz IV reforms as the central driver of the German labor market miracle.

2017 ◽  
Vol 8 (1) ◽  
pp. 271
Author(s):  
Barbara Surdykowska

Time-part Employment – Chances and ThreatsSummaryOver the last twenty years, an increasing share of employment across the EU countries has been made up of part time jobs. That is why the growth in part-time employment stands out as a prominent feature of modern labor markets. However, there are still remarkable differences in the relative volumes of the part-time employment share in different countries within the European Union.In recent years, the issue of labor market flexibility has become prominent in the debate over the labor market policy in Europe. The lack of dynamism in the flexibility of the labor markets within the EU countries, often characterized by a height share of long- term unemployment and stringent employment protection legislation, has frequently been blamed for the poor employment performance of the 80s and 90s.An increase in the rate of part-time work has been generally perceived as a positive development as it enables the employers to adjust work hours to the cyclical conditions more easily, facilitates an adjustment of production and labor costs as well as attracts people, who were previously unwilling or unable to work, towards the labor market. But one has to notice that some studies have found that part-time workers earn less than their full time colleagues, my be less likely to receive some benefits and face reduced chances for promotion.


2016 ◽  
Vol 11 (18) ◽  
Author(s):  
Camilo Contreras Delgado

Resumen:Este artículo examina los fa c t o res internos y externos a una localidad que son copartícipes en la estructuración y reestructuración de su mercado de trabajo local. A partir de la revisión de la historia social y económica del lugar, se destaca su tránsito de enclave minero a lugar de residencia de mineros y trabajadores de maquiladoras. En este caso, se presenta la constitución de los mercados de trabajo locales como un resultado del encuentro de las condiciones del lugar de residencia de los trabajadores y el lugar donde se encuentra el centro de trabajo. De aquí que la movilidad laboral geográfica aparezca como una de las tácticas de los sujetos ante una situación de desempleo.Palabras clave: Mercado de trabajo, Minería, Maquiladoras, Mineros, Movilidad laboral, Desempleo.Abstract:This article examines the internal and external local factors shaping the structuring and restructuring of a local labor market. By reviewing the social and economic history of the community, this article underlines its transition from a mining setting to a residence place for miners and maquila workers. In this case, the constitution of local labor markets is presented as a result of the condition encounter of both workers residence place and the location of the work place. This is a reason explaining why geographical labor mobility comes to be an actor tactic to face unemployment.Key words: Labor market, Mining, Export-oriented industry, Miners, Labor mobility, Unemployment.


2021 ◽  
pp. 107755872110129
Author(s):  
Mark K. Meiselbach ◽  
Matthew D. Eisenberg ◽  
Ge Bai ◽  
Aditi Sen ◽  
Gerard F. Anderson

In concentrated labor markets, where workers have fewer employers to choose from, employers may exploit their monopsony power by contributing less to workers’ health benefits. This study examined if labor market concentration was associated with higher worker contributions to health plan premiums. We combined publicly available data from the Census to calculate labor market concentration and the Medical Expenditure Panel Survey Insurance/Employer Component to determine premium contributions from 2010 to 2016 for metropolitan areas. After controlling for year fixed-effects and market characteristics, we found that higher labor market concentration was associated with higher worker contributions to health plan premiums, lower take-home income, and no change in employer contributions to premiums, consistent with the hypothesis that greater labor market concentration is associated with less generous health benefits. When evaluating the effects of mergers and acquisitions on labor markets, regulatory agencies should critically assess worker contributions to health insurance premiums.


2021 ◽  
Vol 13 (14) ◽  
pp. 7926
Author(s):  
Bharman Gulati ◽  
Stephan Weiler

This paper explores the role of local labor market dynamics on the survival of new businesses. The characteristics of the local labor market are likely to influence the survival of new businesses, the level of entrepreneurship, and the resilience of the regional economy. We apply portfolio theory to evaluate employment-based and income-based measures of risk-and-return trade-offs in local labor markets on new business survival in the United States. Our results show that volatility in local labor markets has a positive impact on new business survival, especially in Metropolitan Statistical Areas. The results are robust across different timeframes, including during economic downturns, thus highlighting the contribution of new businesses in developing the resilience of the local economy, and further promoting sustainable regional economic development.


Author(s):  
Katja Schuster ◽  
Anne Margarian

AbstractMotivated by discussions of skill mismatches on local German vocational educational and training (VET) markets, this paper analyses how occupational segments of VET entry of individuals with lower and intermediate secondary school degree relate to local labor market characteristics. The econometric analysis applies data from a survey conducted with 9th graders within the German National Educational Panel Study (NEPS). Considering opportunity structures and the local competition for training positions, we find that the match between occupations' skill demands and individuals' abilities tends to be specifically close in diverse and competitive urban labor markets. In non-competitive peripheral labor markets, in contrast, graduates with lower school certificates seem to have a higher likelihood of entering VET in segments that are specifically attractive for graduates with upper secondary school degree. The results on the allocation of abilities and the weight of preferences under different labor market conditions have different welfare implications from an individual, regional and general economic perspective.


1998 ◽  
Vol 12 (2) ◽  
pp. 101-116 ◽  
Author(s):  
James J Heckman

The evidence on discrimination produced from the audit method is examined. Audits survey the average firm and not the marginal firm which determines the level of market discrimination. Taken on its own terms, there is little evidence of labor market discrimination from audit methods. The validity of audit methods is critically dependent on unverified assumptions about equality across race/gender groups of the distributions of unobserved (by audit designers) productivity components acted on by firms and about the way labor markets work. Audits can find discrimination when none exists and can disguise it when it does.


2016 ◽  
Vol 16 (2) ◽  
pp. 1147-1167
Author(s):  
Ensar Yılmaz

Abstract This paper aims to search links between market imperfections and functional income distribution. For this purpose we construct a two-sector model – wage goods and luxury goods producing sectors – incorporating imperfections of the product and labor markets under income inequality. In a structure with interdependent and partially monopolistic and competitive markets, we analytically trace up the effects of the changes in power relations proxied by the degree of mark-ups in the product and labor market. The model shows that price and wage mark-ups in two sectors have crucial income distribution implications for the agents in the economy to varying extents. It also demonstrates the effect of the existence of the differentiated consumption patterns arising from income inequality on income distribution. Furthermore, it seems that unemployment level creates externalities on wage rate and on corporate taxes of firms.


Author(s):  
В.Ю. Бабышев ◽  
Г. А. Барышева

В статье рассматривается занятость лиц пожилого возраста в условиях сорвеменных технологических, медицинских и демографических изменений. Актуальность темы исследования обусловлена демографическим старением населения, современными достижениями медицины и изменением характера трудовых операций в результате научно-технического прогресса. В данной статье проверены следующие конкурирующие гипотезы: производительность работников старших возрастных групп находится ниже уровня рентабельности из-за неуклонного ухудшения здоровья или, наоборот, ценность работников старших возрастных групп на современном рынке труда возрастает из-за повышения роли опыта, навыков и квалификации. Дополнительно проанализирован вопрос влияния систем пенсионного обеспечения на мотивацию лиц пожилого возраста к продолжению трудовой деятельности. Для проверки данных гипотез на основе статистики Организации экономического сотрудничества и развития проведен анализ общего уровня занятости, участия в рабочей силе и безработицы, а также временной и неполной занятости по нескольким возрастным группам в диапазоне 15-65 лет и старше. Для оценки динамики проанализирована ситуация на 2000 и 2019 гг. В целом сделан вывод, что количественные и качественные параметры занятости у работников старших возрастных групп уступают среднему рабочему возрасту, однако во временной динамике использование человеческого капитала лиц пожилого возраста растет. В области геронтологии рекомендовано уделять повышенное внимание улучшению здоровья возрастной когорты 65 лет и старше и изменению трудового законодательства в плане стимулирования продолжения трудовой деятельности после официального наступления пенсионного возраста. The article examines the employment of older people in the context of disrupted technological, medical and demographic changes. The relevance of the research topic is due to the demographic aging of the population, modern medical advances and changes in the nature of labor operations as a result of scientific and technological progress. In this article, the following competing hypotheses are tested: the productivity of older workers is below the level of profitability due to a steady decline in health, or vice versa, the value of older workers in the modern labor market is increasing due to the increasing role of experience, skills and qualifications. Additionally, the question of the impact of pension systems on the motivation of older people to continue working is analyzed. To test these hypotheses, based on OECD statistics, we analyzed the overall level of employment, labor force participation and unemployment, as well as temporary and underemployment for several age groups in the range of 15-65+ years. To assess the dynamics, the situation for 2000 and 2019 was analyzed. In general, the author concludes that the quantitative and qualitative parameters of employment of older people are inferior to the average working age, but over time, the use of the human capital of older people is growing. In the field of gerontology, it is recommended to pay increased attention to improving the health of the 65+ age cohort and changing labor legislation in order to stimulate the continuation of work.


Author(s):  
Mirela Cristea ◽  
Gratiela Georgiana Noja ◽  
Petru Stefea ◽  
Adrian Lucian Sala

Population aging and public health expenditure mainly dedicated to older dependent persons present major challenges for the European Union (EU) Member States, with profound implications for their economies and labor markets. Sustainable economic development relies on a well-balanced workforce of young and older people. As this balance shifts in favor of older people, productivity tends to suffer, on the one hand, and the older group demands more from health services, on the other hand. These requisites tend to manifest differently within developed and developing EU countries. This research aimed to assess population aging impacts on labor market coordinates (employment rate, labor productivity), in the framework of several health dimensions (namely, health government expenditure, hospital services, healthy life years, perceived health) and other economic and social factors. The analytical approach consisted of applying structural equation models, Gaussian graphical models, and macroeconometric models (robust regression and panel corrected standard errors) to EU panel data for the years 1995–2017. The results show significant dissimilarities between developed and developing EU countries, suggesting the need for specific policies and strategies for the labor market integration of older people, jointly with public health expenditure, with implications for EU labor market performance.


Author(s):  
Iida Kukkonen ◽  
Outi Sarpila

Physical appearance is generally associated with considerable labor-market sanctions, and appearances are thought to be of particular importance in the feminine service sector. However, little is known about workers’ experiences of appearance-based perks and penalties in Nordic labor markets. Drawing on literature on aesthetic capital and labor, this study aims to fill this research gap. The study uses a nationally representative survey (N = 1600) fielded in Finland and multinomial regression to determine whether subjective experiences of appearance-related perks and penalties are gendered, dependent on the field of work or daily work on appearances. Our main finding is that while both men and women experience looks-based perks and penalties, men are more likely to have experienced appearance having a say in salary negotiations. Our results shed light on the gendered logics of aesthetic capital and labor, and question economic understandings of beauty work as a pathway to labor market success for women


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