Are Working Time Accounts Beneficial for German Establishments?

This contribution investigates whether working time accounts are beneficial for the performance of German establishments. Based on the representative German Establishment Panel of the Institute for Employment Research during the period 2008-2013, effects on productivity, wages, sales, firm size, investments, further training, labor mobility, working hours, operating surplus and profits as performance indicators are estimated. Heterogeneity and robustness are investigated by a subgroup analysis where we distinguished between establishments with a high and a low share of qualified workers, between firms with strong and weak sales fluctuations. Additionally, different lengths of the agreed compensation period and reasons for longer time out periods of the employees are considered. Unobserved firm effects as well as interdependencies between important performance indicators and working time accounts are analyzed. OLS estimates, Lewbel's instrumental estimator and IV panel approaches are applied. As major results we find that productivity and investments are positively correlated with working time accounts. No significant effects of working time accounts can be detected on wages, the number of employees and operating surplus of IV panel estimates. However, on average, we find a tendency towards negative effects on profits. This result is less likely in establishments with a high share of skilled workers. Under strong sales fluctuations we find positively significant on the operating surplus. These mixed results hint to a conflict between the employers and employees interests concerning working time accounts that result in compromise solutions

Skill Shortages in German Establishments

This paper investigates the development of skill shortage during the period 2007-2012. Using the IAB establishment panel, we find differences for the years before, during and after the Great Recession. Furthermore, we analyze the importance of firm characteristics and that of some specific measures with respect to skill shortage based on probit, random effects probit and instrumental variables estimates. The empirical analysis confirms that apprentice and further training serves to reduce the number of unfilled qualified jobs. Plans for the long-run personnel development of the staff are also helpful. Skill shortage within a firm is often only a short-term phenomenon and less often observed over a longer period. During the Great Recession itself, the estimates reveal a weaker relationship between structural characteristics of the firm and skill shortage than in other years. Post-recession effects can be detected. Robustness checks are conducted that account for endogeneity, sample selection, outliers and causality. Least angle regression is applied to select the relevant firm characteristics

Investment under company-level pacts

To improve their competitiveness the companies aim to increase the funds available to finance the necessary investments. In order to reduce wage costs company-specific deviations from industry-level wage contracts are concluded. Company-level pacts between the management and the works council are often preferred in comparison to agreements between employers' association and unions because the former negotiating partners are better informed about the economic situation of a company and have less goal conflicts than the latter. Moreover, these company-level pacts might reduce the hold-up problems which arise once specialized investment is made. Therefore, this paper investigates whether such agreements affect firm-level investment. Based on the IAB Establishment Panel Survey 2001-2010 our estimates reveal that the adoption of a company-level pact leads to a higher investment rate than in other firms driven by re-investment. However, the Great Recession has damped this positive influence. From our econometric analysis we cannot detect any increase in investment during the negotiation phase. After the expiration of a CLP, lower reinvestment and a small increase in net investment take place. Furthermore, our econometric results show that the company-level pacts' success depends on the specific measures which are agreed and on the duration of the pacts

Investment under company-level pacts before and during the Great Recession

Company-level pacts between the management and the works council are often preferred in comparison to agreements between employers’ association and unions because the former negotiating partners are better informed about the economic situation of a company and have fewer goal conflicts than the latter. Moreover, these company-level pacts might reduce the ‘hold-up’ problems which arise once specialized investment is made. Therefore, this article investigates whether such agreements affect firm-level investment. Based on the IAB Establishment Panel Survey 2001–2010 the study indicates that the adoption of a company-level pact leads to a higher investment rate than in other firms driven by reinvestment. However, the Great Recession has damped this positive influence. From the econometric analysis the article does not detect any increase in investment during the negotiation phase. After the expiration of a company-level pact, lower reinvestment and a small increase in net investment take place. © 2013, © The Author(s) 2013

IAB-Betriebspanel: Reichweite des Mindestlohns in deutschen Betrieben

Zum 1. Januar 2015 wurde in Deutschland ein flächendeckender allgemeiner gesetzlicher Mindestlohn eingeführt. Ein zentrales Argument der Befürworter dieser politischen Maßnahme ist eine Begrenzung der Lohnungleichheit. Gegner befürchten Arbeitsplatzverluste. Inwieweit diese Gefahr besteht, hängt auch davon ab, wie stark die Betriebe von der Mindestlohnregelung betroffen sind: Wie viele Betriebe gab es überhaupt, in denen auch Stundenlöhne unter 8,50?Euro bezahlt wurden? Und wie viele Beschäftigte in diesen Betrieben verdienten im Jahr 2014 weniger als den Mindestlohn? Der Kurzbericht beruht auf aktuellen Befragungsergebnissen aus dem IAB-Betriebspanel und liefert einen wichtigen Beitrag dazu, die Reichweite des neuen Gesetzes besser einzuschätzen

Collective bargaining coverage, works councils and the new German minimum wage

This article assesses the role of the recent introduction of the minimum wage for collective bargaining coverage and works councils in Germany. The new minimum wage was initiated to strengthen German tariff autonomy, but effects on collective bargaining coverage are theoretically ambivalent. Using the IAB Establishment Panel, descriptive regressions show that firms covered by a collective bargaining contract are much less likely affected by the minimum wage. To construct a counterfactual for the group of affected establishments, the authors apply an entropy balancing procedure. Subsequent difference-in-differences estimates reveal a slight decline in collective bargaining participation, which falls short of statistical significance. Although the effect on opting into collective bargaining is even slightly positive, the authors observe a significant decrease in coverage through firms that exit collective agreements

Betriebliche Reorganisation, Entlohnung und Beschäftigungsstabilität (Organisational change, wages and job stability)

"This article analyses the effects of firm reorganisation on wages and job mobility at individual level. The analysis is based on German linked employer-employee data (LIAB), which combines firm survey data and employee data from the German Federal Employment Services. The period of observation is from 1996 to 2003. The results from fixed-effects estimates differ markedly by skill group and occupational group. For some groups, the introduction of teamwork is associated with higher wages and more job stability. The reorganisation of departments and changes in the shares of external production and in-house production of inputs raise wages for some groups of employees. Transfers of responsibilities to subordinates, however, bring about negative wage effects for some groups of employees. Negative wage effects are also found when firms introduced profit centres. Measures to ensure product quality have mixed effects on wages. In sum, positive effects on wages and job stability were identified more frequently for groups with medium or high skills. This suggests that organisational change is skillbiased. However, clear negative effects on the job stability of the low-skilled could not be found in this analysis. The results also suggest that organisational change generally either impacts on wages or on job mobility, but not on both. Organisational change is found to have an effect on job mobility alone more often than on wages alone. Furthermore, its indirect effect on job mobility via wages is small. The effects of organisational change on wages are more often positive than negative. Negative and positive effects on job mobility are equally frequent." (Author's abstract, IAB-Doku) ((en)) Additional Information Kurzfassung (deutsch) Executive summary (english)organisatorischer Wandel - Auswirkungen, Lohnhöhe, Beschäftigungsdauer, Gruppenarbeit, Qualitätskontrolle, IAB-Betriebspanel

High-dose Vitamin D Supplementation in Multiple Sclerosis - Results From the Randomized EVIDIMS (Efficacy of Vitamin D Supplementation in Multiple Sclerosis) Trial

Background: Epidemiological, preclinical, and non-interventional studies link vitamin D (VD) serum levels and disease activity in multiple sclerosis (MS). It is unclear whether high-dose VD supplementation can be used as an intervention to reduce disease activity. Objectives: The study aimed to compare the effects of every other day high- (20,400 IU) versus low-dose (400 IU) cholecalciferol supplementation on clinical and imaging markers of disease activity in patients with relapsing-remitting MS or clinically isolated syndrome. Methods: The EVIDIMS (efficacy of vitamin D supplementation in multiple sclerosis) trial was a multicentre randomized/stratified actively controlled explorative phase 2a pilot trial with a double-blind intervention period of 18 months, add on to interferon-β1b. Results: Fifty-three patients were randomized, and 41 patients completed the study. Cholecalciferol supplementation was well tolerated and safe in both arms. After 18 months, clinical (relapse rates, disability progression) and radiographical (T2-weighted lesion development, contrast-enhancing lesion development, brain atrophy) did not differ between both treatment arms. Post-study power calculations suggested that the sample size was too low to prove the hypothesis. Conclusions: The results neither support nor disprove a therapeutic benefit of high-dose VD supplementation but provide a basis for sound sample size estimations in future confirmatory studies. www.clinicaltrials.gov/NCT01440062

Postoperative Severity Assessment in Sheep

Introduction: Sheep are frequently used in translational surgical orthopedic studies. Naturally, a good pain management is mandatory for animal welfare, although it is also important with regard to data quality. However, methods for adequate severity assessment, especially considering pain, are rather rare regarding large animal models. Therefore, in the present study, accompanying a surgical pilot study, telemetry and the Sheep Grimace Scale (SGS) were used in addition to clinical scoring for severity assessment after surgical interventions in sheep. Methods: Telemetric devices were implanted in a first surgery subcutaneously into four German black-headed mutton ewes (4-5 years, 77-115 kg). After 3-4 weeks of recovery, sheep underwent tendon ablation of the left M. infraspinatus. Clinical scoring and video recordings for SGS analysis were performed after both surgeries, and the heart rate (HR) and general activity were monitored by telemetry. Results: Immediately after surgery, clinical score and HR were slightly increased, and activity was decreased in individual sheep after both surgeries. The SGS mildly elevated directly after transmitter implantation but increased to higher levels after tendon ablation immediately after surgery and on the following day. Conclusion: In summary, SGS- and telemetry-derived data were suitable to detect postoperative pain in sheep with the potential to improve individual pain recognition and postoperative management, which consequently contributes to refinement

Intrauterine Growth Retarded Progeny of Pregnant Sows Fed High Protein:Low Carbohydrate Diet Is Related to Metabolic Energy Deficit

High and low protein diets fed to pregnant adolescent sows led to intrauterine growth retardation (IUGR). To explore underlying mechanisms, sow plasma metabolite and hormone concentrations were analyzed during different pregnancy stages and correlated with litter weight (LW) at birth, sow body weight and back fat thickness. Sows were fed diets with low (6.5%, LP), adequate (12.1%, AP), and high (30%, HP) protein levels, made isoenergetic by adjusted carbohydrate content. At −5, 24, 66, and 108 days post coitum (dpc) fasted blood was collected. At 92 dpc, diurnal metabolic profiles were determined. Fasted serum urea and plasma glucagon were higher due to the HP diet. High density lipoprotein cholesterol (HDLC), %HDLC and cortisol were reduced in HP compared with AP sows. Lowest concentrations were observed for serum urea and protein, plasma insulin-like growth factor-I, low density lipoprotein cholesterol, and progesterone in LP compared with AP and HP sows. Fasted plasma glucose, insulin and leptin concentrations were unchanged. Diurnal metabolic profiles showed lower glucose in HP sows whereas non-esterified fatty acids (NEFA) concentrations were higher in HP compared with AP and LP sows. In HP and LP sows, urea concentrations were 300% and 60% of AP sows, respectively. Plasma total cholesterol was higher in LP than in AP and HP sows. In AP sows, LW correlated positively with insulin and insulin/glucose and negatively with glucagon/insulin at 66 dpc, whereas in HP sows LW associated positively with NEFA. In conclusion, IUGR in sows fed high protein∶low carbohydrate diet was probably due to glucose and energy deficit whereas in sows with low protein∶high carbohydrate diet it was possibly a response to a deficit of indispensable amino acids which impaired lipoprotein metabolism and favored maternal lipid disposal