Trends in Establishment Survey Nonresponse Rates and Nonresponse Bias: Evidence from the 2001-2017 IAB Establishment Panel

Evidence from the household survey literature shows a declining response rate trend in recent decades, but whether a similar trend exists for voluntary establishment surveys is an understudied issue. This article examines trends in nonresponse rates and nonresponse bias over a period of 17 years in the annual cross-sectional refreshment samples of the IAB Establishment Panel in Germany. In addition, rich administrative data about the establishment and employee composition are used to examine changes in nonresponse bias and its two main components, refusal and noncontact, over time. Our findings show that response rates dropped by nearly a third: from 50.2% in 2001 to 34.5% in 2017. Simultaneously, nonresponse bias increased over this period, which was mainly driven by increasing refusal bias whereas noncontact bias fluctuated relatively evenly over the same period. Nonresponse biases for individual establishment and employee characteristics did not show a distinct pattern over time with few exceptions. Notably, larger establishments participated less frequently than smaller establishments over the entire period. This implies that survey organizations may need to put more effort into recruiting larger establishments to counteract nonresponse bias.

Disentangling the transformation of the German model: The role of firms’ strategic decisions and structural change

This paper explores the transformation of the German employment and industrial relations model from a political economy approach. Using the IAB Establishment Panel, the evolution of atypical employment and the coverage of the dual system of industrial relations is analysed in different groups of firms. Additionally, using a shift-share technique, we estimate the impact of the change in the employment structure on this process. The results reveal that once institutional constraints were relaxed, firms across the whole economy increased their use of flexible work and individualized the wage bargaining. Moreover, our findings suggest that structural change played a minor role in the process.

The German Minimum Wage: Effects on Productivity, Profitability, and Investments

In this article, we analyze the effects of the introduction of the German minimum wage using difference-in-differences estimations applied to the IAB Establishment Panel. The treatment effects on the treated establishments show a significant increase in personnel costs. When we analyze the effects of the minimum wage on the net sales of intermediates, we observe a reduction, which is fully explained by the increase in wage costs induced by the minimum wage. The results do not point to effects on establishment-level productivity or capital investments. Looking at investments in human capital, we do not observe any effects on apprenticeship offers or the placement of apprentices. If anything, the results point at a slight reduction in the provision of further training.

After early retirement: the variety of human-resource strategies of firms towards older employees

Over the last years, the employment rate of older workers has increased sharply in Germany. Against this background, the question arose as to whether firms have contributed actively to the growing share of older employees, either by offering special human resource management (HRM) measures, such as further training (internal strategy) or by hiring older employees from the external labour market (external strategy). Our paper analyses the interrelation between both strategies. By using data from the IAB Establishment Panel, we investigate the determinants of the firms’ decision to use one or the other strategy or to combine both strategies. Our analyses show that some factors, such as firm size, experiences with older staff or a shortage of skilled workers promote the decision for both strategies. Other characteristics, in contrast, have a positive effect on one strategy only. This applies in particular to industrial relations, but also to the share of qualified workers within a company.

Employment Effects of the New German Minimum Wage: Evidence from Establishment-Level Microdata

The authors present the first evidence on the consequences of the new statutory minimum wage in Germany, which was implemented on January 1, 2015. Using the IAB Establishment Panel, they identify employment effects from variation in the extent that establishments are affected by the minimum wage. A difference-in-differences estimation reveals an increase in average wages between 3.8% and 6.3% and an employment loss by approximately 1.7% in establishments affected by the minimum wage. These estimates imply a labor demand elasticity with respect to wages ranging between −0.2 and −0.4. The authors also observe a transitory reduction of the working hours in the first year after the introduction and that the employment effect seems mostly driven by a reduction in hires rather than by an increase in layoffs.

Personnel policy adjustments when apprentice positions are unfilled

Purpose German establishments face increasing difficulties in filling their apprentice positions. Thus, firms are less able to train (and later retain) their own skilled workforce. The purpose of this paper is to analyse the firms’ personnel policy adjustments in response to unfilled apprentice positions. Design/methodology/approach To estimate the within-firm personnel policy adjustments when unfilled apprentice positions arise, fixed effects panel estimations are applied to a large German establishment-level data set, the IAB Establishment Panel (2008–2016). Findings The estimates indicate that some firms post slightly more apprentice positions in the period after facing unfilled apprentice positions. Moreover, the results reveal that affected craft establishments in urban regions retain more apprenticeship graduates. Besides of these findings, there are no indications of emphasised personnel policy adjustments. Practical implications The multivariate results do not support the claim that training firms may abstain from apprenticeship training when facing unfilled apprentice positions. Originality/value The study shows first evidence of firms’ personnel policy adjustments when apprentice positions remain vacant in Germany, a country with a traditionally high relevance of apprenticeship training.

Voraussetzungen und Effekte betrieblicher Interessenvertretung in eigentümergeführten Unternehmen

Zusammenfassung Im Zentrum ökonomischer Mitbestimmungsforschung steht die Frage, ob Betriebsräte effizient sind. Die hierzu vorliegenden empirischen Befunde tendieren zu einem überwiegend positiven Einfluss von Betriebsräten auf die Performance eines Unternehmens. Weniger Beachtung in diesem Kontext fand bisher die Rolle des Eigentürmers als Geschäftsführer. Mit den Daten des IAB-Betriebspanels wird daher untersucht: (1) welchen Einfluss die Eigentümerführung auf die Wahrscheinlichkeit der Existenz eines Betriebsrats hat und (2) welche ökonomischen Effekte (Produktivität) unter den besonderen Bedingungen der Eigentümerführung erzielt werden. Mittels gepoolten OLS-Schätzungen und dynamischen Panelansätzen wird aufgezeigt, dass eigentümergeführte Unternehmen auf positive ökonomische Effekte der betrieblichen Interessenvertretung verzichten, um ihre nicht-ökonomischen Ziele wie den Erhalt von Einfluss und Kontrolle zu erfüllen. Abstract The efficiency of works councils has always been in the focus of economic research on co-determination. Empirical findings show a positive influence of works councils on firm performance. Less attention so far has been given to the role of owner-managers. The data of the IAB establishment panel is used to (1) examine the influence of owner management on the likelihood of the existence of a works council and (2) the economic effects achieved under the particular conditions of owner management. The estimations of pooled OLS and GMM models show, that owner-managers dispense with positive economic effects of works councils in order to achieve their non-economic goal of maintaining control and influence.

The German Model of Industrial Relations: (Where) Does It Still Exist?

Using data from the representative IAB Establishment Panel, this paper charts changes in the two main pillars of the German IR model over the last 20 years. It shows that collective bargaining coverage and worker representation via works councils have substantially fallen outside the public sector. Less formalized and weaker institutions such as voluntary orientation of uncovered firms towards sectoral agreements and alternative forms of employee representation at the work-place have partly attenuated the overall erosion in coverage. Multivariate analyses indicate that the traditional German IR model (with both collective agreements and works councils) is more likely found in larger and older plants, and it is less likely in plants managed by the owner, in single and foreign-owned plants, in individually-owned firms or partnerships, and in exporting plants. In contrast, more than 60 % of German plants did not exhibit bargaining coverage or orientation or any kind of worker representation in 2015. Such an absence of the main institutional features of the German IR model is mainly found in small and medium-sized plants, in particular in the service sector and in eastern Germany, and its extent is increasing dramatically.

A Note on the Decline of Collective Bargaining Coverage: The Role of Structural Change

In the last 20 years there is a sharp decline in collective bargaining coverage in Germany. Research on the determinants of collective bargaining shows: subscribing to a sectoral bargaining system depends on several structural factors, like firm size, branch affiliation, owner-ship, firm age and work force composition. Parameter that – at least partly - were subject to considerable changes in the last two decades. With data of the IAB establishment panel we want to determine which part of the decline in collective bargaining coverage is due to structural change. We use a decomposition technique (Fairlie 2005) to break down the differences in coverage between 1998 and 2016. Further-more we take a look at distinct subgroups of establishments (along firm size). Our findings show that there is some influence of structural factors on the decline of collective bargaining coverage in the long run. And there are considerable differences between small and large firms with the decisions of the latter being more dependent on structural change.

Exploring the (Missing) Gender Training Gap in Germany: The Role of Organizations and Sectors in Continuing Training Participation

This article addresses the question how organizational characteristics are related to gender differences in employer-provided continuing training participation. By building on labor market and organizational theory, four mechanisms are tested: (i) formal policies, (ii) relative power, (iii) resources, and (iv) training demand. Multivariate analyses based on the German IAB-Establishment Panel provide evidence that the gender training gap varies considerably between organizations. Organizational policies supporting women’s employment over the life course, a higher share of female top managers, and employee organizations help to prevent a gender training gap. Moreover, the gender training gap is related to sectoral differences and company size.