Interfirm Job Mobility of Two Cohorts of Young German Men 1979 - 1990: An analysis of the (West-)German Employment Statistic Register Sample concerning multivariate failure times and unobserved heterogeneity

The OECD (1993) has documented that the majority of workers in industrialised countries can look forward to finding a stable employment relationship. However new entrants into the labor force experience high turnover. Promoting institutions which support longer tenures and worker participation (or ''voice`` in the firm) utilize strategies to encourage enterprise and employee efforts in skill formation and training. The results of the OECD (1993) study show that attachments between employee and employer are more likely to endure for Japanese, French and German workers. Furthermore Germany has the highest share of young new recruits who received any formal training from their employer. In Germany, 71.5 % of young new recruits were trained at any job within 7 years after leaving school, whereas in the U.S. only 10.2 % of young new recruits were similarly trained (cf. OECD 1993, 137). It is sometimes assumed that employment protection policies have been exogenously imposed and thus probably impair efficiency. However, research on the micro-economics of labor markets has shown that employers may be interested in long-term employment relationships (cf. Levine 1991). Here, the job training model focusing on the importance of human capital investment, specifically the job shopping and matching model stressing the process of information gathering through employment experience should be mentioned. In such models employment protection legislation has not only desirable distributional effects but also help to ensure efficient outcomes. Therefore, it is important to assess the relevance of micro- economic theories empirically. This paper provides an empirical analysis of job durations in Western Germany using information from two cohorts of new entrants to the labor force documented in the (West-)German employment statistic register sample (cf. Bender and Hilzendegen 1996). The appropriate empirical technique to study job length is event history or survival analysis. In labor market research, survival analysis has primarily focused on explaining the length of unemployment spells. Application of this technique to employment is less common 1 , because huge longitudinal data sets are needed. Apart from testing hypotheses about the effect of personal characteristics and labor demand variables (e.g. firm size and industry affiliation), we will assess the influence of heterogeneity of the members of the two cohorts on their duration profile. The applied model and estimation method allow for unobserved heterogeneity and correlation between the clustered failure times of one employee as well as for right-censored spells. Our analysis is not restricted to the beginning of the working life of the employees. The individual retirement decision is affected by employment protection and early retirement regulations which differ widely between the firms. The respective data are missing in the employment statistic register, so that the retirement decision cannot be modelled explicitly

What does the stork bring to women's working career?

Many studies have been devoted to analyse the effect of maternity on working mothers; they mostly refer to countries where female participation is high. Fewer studies consider Southern European countries. This paper aims at filling the gap analysing the effects of motherhood on women’s working career in Italy, a neat example of Southern European country where female participation is increasing but still low and where the decrease in trade unions’ power increased wage disparities. Our results show that conditional average wages of mothers become significantly lower than those of non-mothers after childbirth, showing no sign of a closing gap 5 years afterward. However, this penalty does not emerge for mothers moving to a part-time job; hence - differently from the existing literature - we highlight the potential role of part-time jobs in mitigating the "reduced effort" effect of childrearing. Furthermore, we estimate a significant increase in the probability of transition from employment to non-employment for new mothers. The probability is higher the lower the pre-childbirth wage. However, this penalty is reduced by the availability of part-time jobs in mothers’ relevant labour market. Hence again it emerges the potential role of part-time jobs in mitigating the negative effect of childbirth on women’s labour market participation. the support for flexibility among the least productive employed workers. The model described provides some new insights on the comparative dynamics of labor market institutions in the U.S. and in Europe over the last few decades, shedding some new light both on the reasons for the original build-up of "Eurosclerosis," and for its the persistence up to the present day.motherhood, part-time jobs, wage penalty, career.

Are Temporary Jobs a Port of Entry into Permanent Employment? Evidence from Matched Employer-Employee Data

Are temporary jobs a port of entry into permanent employment? In this paper we argue that the answer crucially depends on the type of temporary contracts being considered, as the different contracts observed in practice are typically characterized by varying combinations of training, tax-incentives and EPL provisions. We base our empirical evidence on a longitudinal sample of labour market entrants in Italy, a country where a large number of temporary contracts coexist with a relatively high employment protection for standard employees. We estimate dynamic multinomial logit models with fixed effects, to allow for non-random sorting of workers into the different types of contracts. We show that the transition to permanent employment is more likely for individuals holding any type of temporary contracts than for the unemployed, thus broadly confirming the existence of port-of-entry effects. Yet, not all temporary contracts are the same: training contracts are the best port of entry, while freelance contracts are the worst. We also show that temporary contracts are generally a port-of-entry into a permanent position within the same employer, but not across firms, implying that little general-purpose training is gained while on temporary jobs. Moreover, the time needed for an internal transformation from a temporary to a permanent position appears rather long, suggesting that firms are likely to use (a sequence of) temporary contracts as a cost-reduction strategy, rather than as a screening device for newly hired workers.temporary jobs, port of entry, matched employer-employee data, dynamic multinomial logit models, state dependence, fixed effects

Alternative Pathways to High School Graduation: An International Comparison

Evaluates alternative pathways to high school graduation -- such as school- or employment-based technical or vocational training programs -- in different countries, in terms of content, graduation requirements, inclusiveness, and outcomes

Self-Employment Dynamics, State Dependence and Cross-Mobility Patterns

This paper analyzes the mobility between self-employment, wage employment and non-employment. Using data for men in West Germany, we find strong true state dependence in all three states. Moreover, compared to wage employment, non-employment increases the probability of self-employment significantly, and self-employment goes along with a higher risk of future non-employment.self-employment, state dependence, labor market dynamics, unemployment

The Career Costs of Children

This paper analyzes the life-cycle career costs associated with child rearing and decomposes their effects into unearned wages (as women drop out of the labor market), loss of human capital, and selection into more child-friendly occupations. We estimate a dynamic life-cycle model of fertility, occupational choice, and labor supply using detailed survey and administrative data for Germany for numerous birth cohorts across different regions. We use this model to analyze both the male-female wage gap as it evolves from labor market entry onward and the effect of pro-fertility policies. We show that a substantial portion of the gender wage gap is explainable by realized and expected fertility and that the long-run effect of policies encouraging fertility are considerably lower than the short-run effects typically estimated in the literature.fertility, labor supply, occupational choice