nep-lab New Economics Papers
on Labour Economics
Issue of 2006‒06‒17
seventeen papers chosen by
Stephanie Lluis
University of Minesota

  1. Bonus oder Bias? : Mechanismen geschlechtsspezifischer Entlohnung By Achatz, Juliane; Gartner, Hermann; Glück, Timea
  2. Wage structure and labour mobility in the West German private sector 1993-2000 By Alda, Holger; Bellmann, Lutz; Gartner, Hermann
  3. Collective contracts, wages and wage dispersion in a multi-level model By Stephan, Gesine; Gerlach, Knut
  4. Wage distributions by wage-setting regime By Gerlach, Knut; Stephan, Gesine
  5. Analyzing the changing gender wage gap based on multiply imputed right censored wages By Gartner, Hermann; Rässler, Susanne
  6. Individual tenure and collective contracts By Gerlach, Knut; Stephan, Gesine
  7. How collective contracts and works councils reduce the gender wage gap By Gartner, Hermann; Stephan, Gesine
  8. Do newly founded firms pay lower wages? First evidence from Germany By Brixy, Udo; Kohaut, Susanne; Schnabel, Claus
  9. How fast do newly founded firms mature? : empirical analyses on job quality in start-ups By Brixy, Udo; Kohaut, Susanne; Schnabel, Claus
  10. Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions By Andrea Bassanini; Romain Duval
  11. Wages and Market Potential in Germany By Michael Roos
  12. The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis By Özlem Onaran; Engelbert Stockhammer
  13. Award errors and permanent disability benefits in Spain By Sergi Jiménez-Martín; José M. Labeaga; Cristina Villaplana Prieto
  14. Base Period, Qualifying Period and the Equilibrium Rate of Unemployment By Elke J. Jahn; Thomas Wagner
  15. Are fixed-term jobs bad for your health? : a comparison of West-Germany and Spain By Gash, Vanessa; Mertens, Antje; Romeu Gordo, Laura
  16. Employment effects of centralization in wage setting in a median voter model By Ludsteck, Johannes
  17. When Do Employees Leave Their Job for Entrepreneurship: Evidence from Linked Employer-Employee Data By Ari Hyytinen; Mika Maliranta

  1. By: Achatz, Juliane (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Gartner, Hermann (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Glück, Timea (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "To what extent is the gender wage gap of fulltime employees due to differences in productiv-ity- related characteristics, to discrimination of female employees, and how is the wage gap affected by firm specific features? To analyze these problems we use a linked employer-employee database for East and West Germany in 2000, made available by the Institute for Labour Market Research. In particular, we address the effect on wage levels of the sex com-position of occupations within firms (job cells). Our estimations rely on the decomposition of the wage differential proposed by Oaxaca and Blinder. We find that only one tenth of the gender gap in wages is explained by human capital differences between men and women. Re-garding the gender wage gap in Germany we conclude that discrimination in the allocation of men and women to different jobs is an important mechanism: With increasing proportions of women within job cells we observe decreasing wage levels for men and women but with higher rates of decline for women than for men. While the presence of worker's councils are shown to have a positive impact on wage levels, women are found to profit most from their presence within firms." (author's abstract, IAB-Doku) ((en))
    Keywords: Lohnunterschied - Determinanten, erwerbstätige Frauen, erwerbstätige Männer, Arbeitsproduktivität, Qualifikationsniveau, Betriebsrat, regionaler Vergleich, IAB-Linked-Employer-Employee-Datensatz, Ostdeutschland, Westdeutschland, Bundesrepublik Deutschland
    JEL: J16 J31 J71
    Date: 2004–07–21
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200402&r=lab
  2. By: Alda, Holger (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Bellmann, Lutz (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Gartner, Hermann (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Since the early 90's the West German firms have to deal with sharp changes of economic environment: the German Unification, the emerging competitors in the east European countries and the deregulation of several labour market institutions. We analyse the wage structure, the wage changes and the labour mobility during this period using the linked employer-employee dataset from the Institute for Employment Research for the years 1993, 1995 and 2000. The dataset allows us to investigate especially the wage structure within firms and the exit and entry rates of workers at firm level. The main finding is that both wage inequality within and between firms and workers mobility was rising during the 90's. This development is mainly driven by the dynamics of high wage workers and high wage firms. The rising variance of wages can only partly be explained by a change in the occupational composition of firms. A decomposition of the variance of wages shows that the importance of the firm-specific variation increases, whereas that of human capital variation decreases." (author's abstract, IAB-Doku) ((en))
    Keywords: Lohnstruktur, Lohnentwicklung, Arbeitskräftemobilität, IAB-Linked-Employer-Employee-Datensatz, Arbeitsplatzwechsel, Lohnunterschied, Lohndifferenzierung, privater Sektor, Privatwirtschaft, Westdeutschland, Bundesrepublik Deutschland
    JEL: J31 J41 J62 M51
    Date: 2005–08–23
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200518&r=lab
  3. By: Stephan, Gesine (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Gerlach, Knut
    Abstract: "The authors use German linked employer-employee data for the years 1990, 1995 and 2001 to analyze, which dimensions of wage setting differ across three wage-setting regimes: Establishments applying sectoral collective contracts, establishments with firm-level contracts and uncovered establishments. The empirical analysis is restricted to workers without supervisory functions in larger manufacturing firms and shows that for this group of workers base wages are higher in firms applying collective contracts, while returns to human capital and the gender wage gap are reduced. Moreover, during the nineties these effects have become stronger." (author's abstract, IAB-Doku) ((en))
    Keywords: Tarifvertrag, Lohnstruktur, Lohnfindung, Flächentarifvertrag, Firmentarifvertrag, Tariflohn, Lohnhöhe, geschlechtsspezifische Faktoren
    JEL: J31 J51
    Date: 2004–10–14
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200406&r=lab
  4. By: Gerlach, Knut; Stephan, Gesine (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Collective wage contracts impose restrictions on wage-setting. We utilize German linked employer-employee data for blue-collar worker to compute the dispersion of wages and wage components within and across firms under three different wage-setting regimes: Establishments applying sectoral collective contracts, establishments with firm-level contracts and uncovered establishments. The empirical analysis confirms a lower dispersion of wages and wage components for firms applying sectoral collective contracts compared to companies in the other two wage-setting regimes. Implications for policy are discussed." (author's abstract, IAB-Doku) ((en))
    Keywords: Lohnstruktur, Tarifvertrag, Firmentarifvertrag
    JEL: J31 J51
    Date: 2005–04–11
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200509&r=lab
  5. By: Gartner, Hermann (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Rässler, Susanne (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "In order to analyze the gender wage gap with the German IAB-employment sample we have to solve the problem of censored wages at the upper limit of the social security system. We treat this problem as a missing data problem. We regard the missingness mechanism as not missing at random (NMAR, according to Little and Rubin, 1987, 2002) as well as missing by design. The censored wages are multiply imputed by draws of a random variable from a truncated distribution. The multiple imputation is based on Markov chain Monte Carlo (MCMC) technique. We complete the dataset with this technique in order to apply a Juhn-Murphy-Pierce-decomposition. As the main sources for the narrowing gender wage gap from 1991 to 2001 we identify an improvement of women's position within the wage distribution." (author's abstract, IAB-Doku) ((en))
    Keywords: Lohnunterschied, Lohnhöhe, geschlechtsspezifische Faktoren, IAB-Beschäftigtenstichprobe, Datenaufbereitung, Datenanalyse, angewandte Statistik
    JEL: C15 J16
    Date: 2005–02–28
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200505&r=lab
  6. By: Gerlach, Knut; Stephan, Gesine (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "The paper analyses the relationship between individual tenure and the application of collective contracts at the firm level, using a multi-level model and a German linked employer-employee data set for the years 1990, 1995 and 2001. The main result is that elapsed tenure is longer in firms applying collective contracts than in companies with individual wage-setting. Thus workers in firms with collective contracts benefit not only from higher wages, but also from higher job stability. Furthermore, we find no significant changes in mean tenure during the nineties as well as stable differences across wage-setting regimes." (author's abstract, IAB-Doku) ((en))
    Keywords: Betriebszugehörigkeit - Dauer, Firmentarifvertrag, Tarifvertrag, Arbeitsplatzsicherheit, Lohnhöhe
    JEL: J51
    Date: 2005–04–20
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200510&r=lab
  7. By: Gartner, Hermann (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Stephan, Gesine (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "The gender wage gap in Germany is smaller in firms covered by collective contracts or having a works council, partly because these institutions are associated with lower unobserved productivity differences and less wage discrimination, partly because they compress the distribution of wage residuals." (author's abstract, IAB-Doku) ((en))
    Keywords: Lohnunterschied, Männer, Frauen, geschlechtsspezifische Faktoren, Tarifvertrag - Auswirkungen, Betriebsrat - Auswirkungen, Lohndifferenzierung, Lohndiskriminierung, IAB-Linked-Employer-Employee-Datensatz
    JEL: J51 J71
    Date: 2004–12–15
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200407&r=lab
  8. By: Brixy, Udo (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Kohaut, Susanne (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Schnabel, Claus
    Abstract: "Using a linked employer-employee data set for Germany, this paper analyses wage setting in a cohort of newly founded and other establishments from 1997 to 2001. While theory provides alternative explanations for higher or lower wages in newly founded firms, we show empirically that start-ups tend to pay lower wages, ceteris paribus. On average, wages in newly founded establishments are 8 percent lower than in similar incumbent firms. This negative wage differential is substantially smaller in eastern than in western Germany. The wage differential is shown to decline over time as the newly founded firms become more mature." (author's abstract, IAB-Doku) ((en))
    Keywords: IAB-Linked-Employer-Employee-Datensatz, Unternehmensgründung, Unternehmensalter, Lohnstruktur, Lohnhöhe
    JEL: D21 J30
    Date: 2004–09–28
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200404&r=lab
  9. By: Brixy, Udo (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Kohaut, Susanne (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Schnabel, Claus
    Abstract: "Using a linked employer-employee data set for Germany, this paper analyzes labour fluctuation and wage setting in a cohort of newly founded and other establishments from 1997 to 2001. We show empirically that start-ups tend to have higher labour turnover rates, ceteris paribus. Moreover, bargaining coverage rates and wages in new firms are lower than in similar incumbent firms. Both the excess labour fluctuation and the wage differential are shown to decline and become insignificant over time as the newly founded firms mature. Our results imply that it takes a new firm only a few years to become an incumbent firm." (author's abstract, IAB-Doku) ((en))
    Keywords: Unternehmensgründung, Unternehmensentwicklung
    JEL: D21 J30 J63
    Date: 2005–01–13
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200502&r=lab
  10. By: Andrea Bassanini; Romain Duval
    Abstract: This paper explores the impact of policies and institutions on employment and unemployment of OECD countries in the past decades. Reduced-form unemployment equations, consistent with standard wage setting/price-setting models, are estimated using cross-country/time-series data from 21 OECD countries over the period 1982-2003. In the "average" OECD country, high and long-lasting unemployment benefits, high tax wedges and stringent anti- competitive product market regulation are found to increase aggregate unemployment. By contrast, highly centralised and/or coordinated wage bargaining systems are estimated to reduce unemployment. These findings are robust across specifications, datasets and econometric methods. As policies and institutions affect employment not only via their impact on aggregate unemployment but also through their effects on labour market participation - particularly for those groups "at the margin" of the labour market, group-specific employment rate equations are also estimated. In the "average" OECD country, high unemployment benefits and high tax wedges are found to be associated with lower employment prospects for all groups studied, namely prime-age males, females, older workers and youths. There is also evidence that group-specific policy determinants matter, such as targeted fiscal incentives. The paper also finds significant evidence of interactions across policies and institutions, as well as between institutions and macroeconomic conditions. Consistent with theory, structural reforms appear to have mutually reinforcing effects: the impact of a given policy reform is greater the more employment-friendly the overall policy and institutional framework. Certain more specific interactions across policies and institutions are found to be particularly robust, notably between unemployment benefits and public spending on active labour market programmes as well as between statutory minimum wages and the tax wedge. Finally, it is shown that macroeconomic conditions also matter for unemployment patterns, with their impact being shaped by policies. Cet article explore l'impact des politiques et des institutions sur l'emploi et le chômage dans les pays de l'OCDE au cours des dernières décennies. Des équations réduites de taux de chômage, telles que dérivées par exemple d'un modèle de négociations salariales, sont estimées sur un panel de 21 pays de l'OCDE sur la période 1982-2003. Il ressort que, dans le pays «moyen» de l'OCDE, le taux moyen de remplacement des indemnités chômage, le coin fiscalo-social et le degré de réglementation des marchés de produits augmentent le taux de chômage structurel. A contrario, il apparaît qu'un haut degré de centralisation/co-ordination des négociations salariales réduit le chômage structurel. Ces résultats sont robustes à des changements de spécification, d'échantillon et de méthode d'estimation économétrique. Étant donné que les politiques et les institutions affectent l'emploi non seulement via leur impact sur le chômage mais aussi au travers de leurs effets sur la participation au marché du travail .en particulier pour les groupes « à la marge » du marché du travail, des équations d'emploi par groupes sont également estimées. Il ressort que dans le pays «moyen» de l'OCDE, le taux de remplacement des indemnités chômage et le coin fiscalo-social réduisent les perspectives d'emplois de chacun des groupes étudiés, à savoir les hommes de 25 à 55 ans, les femmes, les travailleurs âgés et les jeunes. Certains déterminants spécifiques à chaque groupe jouent également un rôle, en particulier les incitations fiscales ciblées. Le document conclut également à l.existence d.interactions significatives entre politiques et institutions, de même qu.entre institutions et chocs. En accord avec la théorie, il ressort également que les effets des réformes structurelles se renforcent mutuellement : l'impact d'une réforme donnée est d'autant plus fort que l'ensemble des autres politiques et institutions sont déjà favorables à l'emploi. Certaines interactions plus spécifiques entre politiques apparaissent particulièrement robustes, notamment entre le taux de remplacement des indemnités chômage et les dépenses en politiques actives en faveur de l'emploi, ou encore entre le salaire minimum et le coin fiscalo-social. Enfin, l'article montre que les conditions macro-économiques affectent le chômage et que cet impact dépend des politiques.
    Keywords: unemployment, chômage, institutions, institutions, employment, emploi, shocks, choc, reform complementarities
    JEL: J38 J58 J68
    Date: 2006–06–02
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:486-en&r=lab
  11. By: Michael Roos
    Abstract: Using a market potential function, we examine the spatial correlation of wages and consumer purchasing power across regions in West Germany. The market potential function can be regarded as a reduced form of several new economic geography models. Thus, the estimation results provide some first evidence on the validity of these models for European regions. We find that the wage in one region is indeed positively related to purchasing power in other regions. However, this relationship only holds for skilled wokers' salaries and wages, whereas it does not for the wages of untrained workers.
    URL: http://d.repec.org/n?u=RePEc:mik:wpaper:00_09&r=lab
  12. By: Özlem Onaran; Engelbert Stockhammer (Department of Economics, Vienna University of Economics & B.A.)
    Abstract: The aim of this paper is to estimate the effect of FDI and trade openness on wages in the CEECs in the post-transition era. We utilize a cross-country sector-specific eceonometric analysis based on one-digit level panel data for manufacturing industry in the Czech Republic, Hungary, Poland, Slovakia, Slovenia, for the period of 2000-2004. The results suggest that the increases in productivity are reflected in wages only to a modest extent, even in the long-term, leading to a steady decline in the share of labor in manufacturing industry in almost all sub-sectors in all countries. Meanwhile, the high significant and negative effect of unemployment on wages shows that the labor market is flexible in terms of wage flexibility. FDI has a positive effect on wages only in the capital and skill intensive sectors. The results also show that the increase in trade with EU did not lead to positive prospects for wages in manufacturing industry, contrary to the expectations of pro-market policies and traditional trade theory. The long-term net effect of exports and imports is negative, suggesting that integration of CEECs to EU via trade liberalization have worked at the expense of labor.
    JEL: F16 F21 J31
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp094&r=lab
  13. By: Sergi Jiménez-Martín; José M. Labeaga; Cristina Villaplana Prieto
    Abstract: There is a controversial debate about the effects of permanent disability benefits on labor market behavior. In this paper we estimate equations for deserving and receiving disability benefits to evaluate the award error as the difference in the probability of receiving and deserving using survey data from Spain. Our results indicate that individuals aged between 55 and 59, self-employers or working in an agricultural sector have a probability of receiving a benefit without deserving it significantly higher than the rest of individuals. We also find evidence of gender discrimination since male have a significantly higher probability of receiving a benefit without deserving it. This seems to confirm that disability benefits are being used as an instrument for exiting the labor market for some individuals approaching the early retirement or those who do not have right to retire early. Taking into account that awarding process depends on Social Security Provincial Department, this means that some departments are applying loosely the disability requirements for granting disability benefits.
    Keywords: Disability benefits, Award error, Early retirement, Social security
    JEL: H55 J26
    Date: 2006–05
    URL: http://d.repec.org/n?u=RePEc:upf:upfgen:966&r=lab
  14. By: Elke J. Jahn (Institute for Employment Research (IAB), University of Erlangen-Nuremberg and IZA Bonn); Thomas Wagner (University of Applied Sciences, Nuremberg)
    Abstract: Unemployment benefits, benefit duration, base period and qualifying period are constituent parameters of the unemployment insurance system in most OECD countries. From economic research we know that the amount and duration of unemployment benefits increase unemployment. To analyze the effects of the other two parameters we use a matching model with search frictions and show that there is a trade-off between the qualifying and the base period on the one hand and the amount and duration of the unemployment benefits on the other. A country that combines a high level of unemployment benefits with a long benefit duration can neutralize the effect on the equilibrium rate of unemployment with a long qualifying and/or a short base period.
    Keywords: matching model, unemployment insurance, base period, qualifying period, labor market policy
    JEL: J41 J64 J68
    Date: 2006–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2151&r=lab
  15. By: Gash, Vanessa; Mertens, Antje; Romeu Gordo, Laura (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "In this paper we analyse the health effects of fixed-term contract status for men and women in West-Germany and Spain using panel data. This paper asks whether changes in the employment relationship, as a result of the liberalisation of employment law, have altered the positive health effects associated with employment (Goldsmith et al. 1996; Jahoda 1982). Using information on switches between unemployment and employment by contract type we analyze whether transitions to different contracts have different health effects. We find that unemployed workers show positive health effects at job acquisition, and also find the positive effect to be smaller for workers who obtain a fixed-term job. We also establish surprising differences by gender and country, with women less likely to report positive health effects at job acquisition. For West-Germany, this was found to be a function of the dual-burden of paid and unpaid care within the home." (author's abstract, IAB-Doku) ((en))
    Keywords: befristeter Arbeitsvertrag - Auswirkungen, Gesundheitszustand - internationaler Vergleich, Arbeitnehmer, geschlechtsspezifische Faktoren, Arbeitslose, Sozioökonomisches Panel, Europäisches Haushaltspanel, psychische Faktoren, Unsicherheit, Westdeutschland, Spanien, Bundesrepublik Deutschland
    JEL: J41 J64 I10
    Date: 2006–05–11
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200608&r=lab
  16. By: Ludsteck, Johannes (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Most models on centralization in wage setting rest on the assumption of identical firms. This stands in sharp contrast to informal statements against centralization wich rest on the argument that firms are heterogenous and that equal treatment of firms by unions must therefore be ineffcient. We analyse one aspect of this debate in the framework of a median voter model with heterogenous firms but we don't find unique negative employment effects. It may be cumbersome or even impossible to check whether the conditions for unique effects are met. Explorative investigations of the magnitude of the implied effects show however, that they are noteworthy only if differences between firms are large." (author's abstract, IAB-Doku) ((en))
    Keywords: Lohntheorie, Arbeitsmarkttheorie, Lohnfindung, Zentralisierung, Beschäftigungseffekte, Tarifverhandlungen - Effizienz, Gewerkschaft
    JEL: J51 J52
    Date: 2006–02–02
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200602&r=lab
  17. By: Ari Hyytinen; Mika Maliranta
    Keywords: entrepreneurship, occupation choice, mobility
    JEL: G14 G31 G32
    Date: 2006–06–05
    URL: http://d.repec.org/n?u=RePEc:rif:dpaper:1023&r=lab

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