Product Market Deregulation and Employment Outcomes

This paper investigates the short- and medium-term effects of the deregulation of shopopening hours legislation on retail employment in Germany. In 2006, the legislative competence was shifted from the federal to the state level, leading to a gradual deregulation of shop opening restrictions in most of Germany’s sixteen federal states. The paper exploits regional variation in the legislation in order to identify the effect product market deregulation has on retail employment. We find robust evidence that the deregulation of shop closing legislation had negative effects on retail employment, with considerable heterogeneity in terms of the type of employment as well as establishment size. That is, the employment losses are most pronounced for small retail stores and are almost exclusively borne by full-time employees

Essays on the determinants of changing employment and wage structures

Diese Dissertation umfasst vier Essays, die einen Beitrag zur empirischen Literatur über die Determinanten der Veränderungen in der Beschäftigungs- und Lohnstruktur in Deutschland leisten. Im ersten Aufsatz wird der Zusammenhang zwischen technologischem Wandel und Wachstum von Beschäftigung am unteren Ende der Lohnverteilung untersucht. Eine ökonometrische Analyse zeigt, dass technologischer Wandel die Arbeitsnachfrage von routine-intensiven Berufen hin zu Berufen verschiebt, die niedrig entlohnte manuelle Tätigkeiten erfordern und sich nicht zur Substitution durch Informationstechnologien eignen. Damit trägt er zur Polarisierung der Beschäftigungsstrukturen bei. Der zweite Aufsatz untersucht die Rolle von technologischem Wandel in der Entstehung räumlicher Lohnungleichheiten. Es wird gezeigt, dass technologischer Wandel zu einem Zuwachs in der Entlohnung von nicht-routine kognitiven Tätigkeiten und zu einem Rückgang der Entlohnung für routine und nicht-routine manuelle Tätigkeiten führte und damit zur Vergrößerung der inter- und intra-regionalen Lohnungleichheit beitrug. Der dritte Aufsatz untersucht die Beschäftigungswirkung von Produktmarktderegulierung am Beispiel der Liberalisierung der Ladenschlussgesetze, wobei regionale Variation in der Gesetzgebung zur Identifikation des kausalen Effekts dient. Es wird gezeigt, dass die Beschäftigung im Einzelhandel durch die Deregulierung um etwa 19.000 vollzeitäquivalente Stellen zurückging. Dem zugrunde liegt ein signifikanter Rückgang an kleinen Unternehmen, die personalintensiver arbeiten als große Unternehmen. Im vierten Aufsatz werden die Auswirkungen von öffentlicher Beschäftigung auf die Beschäftigung im Privatsektor untersucht. Ergebnis ist, dass die Schaffung öffentlicher Beschäftigung erhebliche Verdrängungseffekte auf die Gesamtbeschäftigung im Privatsektor hat, wobei hauptsächlich der handelbare Sektor von Beschäftigungsverlusten betroffen ist.This thesis consists of four essays that contribute to the empirical literature on the determinants of recent changes in the employment and wage structure in Germany. The first essay analyzes recent employment growth at the lower tail of the wage distribution and its relation to technological progress. An econometric analysis suggests that tech-nological progress has shifted the demand from routine intensive occupations towards low-paying service occupations that require non-routine manual tasks, which are difficult to be replaced by information technologies, thereby contributing to the polarization of the employment structure. The second essay explores the role of technological change in the evolution of spatial wage inequality. The results indicate technological change is one driver of wage inequality by increasing the compensation for non-routine cognitive tasks, and by decreasing the compensation for routine and non-routine manual tasks. The third essay exploits regional variation in the liberalization of shop-closing legislation in Germany to identify the causal impact of product market deregulation on employment outcomes in the retail sector. The results from the empirical analysis suggest that the deregulation had moderately negative effects on retail employment, leading to a loss of approximately 19,000 full-time equivalent jobs. The reason is that deregulation induced a change in the market structure by significantly decreasing the number of small retail stores which are relatively more personnel-intensive than larger formats. The fourth essay provides an empirical analysis of the impact of changes in public sector employment on employment in the private sector at the level of local labor markets. It shows that expansions in public employment can be associated with a sizeable crowding out effect on private sector employment. Moreover, the results indicate that employment losses are concentrated in the tradable sector

Spatial Wage Inequalityand Technological Change

During the last decades, wage inequality in Germany has considerably increased both within and across regions. Building on concepts of the task-based approach, this paper studies whether and to what extent these developments are driven by technological change. We present novel evidence that technological change is positively related to intra-regional wage inequality. This is driven by increases in the compensation for non-routine cognitive tasks that are prevalent at upper percentiles of the wage distribution combined with decreases in the compensation for non-routine manual tasks, which are located at lower percentiles. Because there exists substantial variation in the degree of technology exposure across German regions, technological change can also explain part of the rise in inter-regional wage inequality