Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp06082.pdf Non-technical summary:Using a large linked employer-employee data set, this paper presents new evidence on the collective bargaining wage effect in western and eastern Germany. The novel feature of our analysis is that we use a longitudinal data set. Thus, in contrast to previous studies, we seek to assess the extent to which differences in wages between workers in covered and uncovered firms really represent an effect of collective bargaining coverage, rather than a consequence of the non-random selection of workers and firms into the different regimes. The fact that we observe employers to change their contract status over time provides us with the opportunity to identify the impact on individual wages by measuring the relative wage gains or losses of workers employed in firms that change their contract status.The results from a Pooled OLS specification indicate that differences in firm characteristics account for the largest proportion of omitted variable bias. Systematic sorting of observably better firms into the regimes appears to be more relevant for industry contracts in western Germany and for firm-level contracts in eastern Germany. The estimates from a fully interacted specification appear to support the hypothesis that unions compress some of the returns to observable worker attributes. However, the results from a fixed-effects specification show that a large part of this flattening of the wage structure arises from a selectivity bias, as workers with low levels of observable skills are positively and workers with higher levels of skills are negatively selected into covered firms. Wage decompositions indicate that the overall effect of collective bargaining coverage on the returns to observable attributes appears to be rather negligible once the selection into the regimes is accounted for.Taken together, the fixed-effects specifications suggest the following conclusions. First, differences in observables and unobservables appear to explain the full firmlevel contract wage premium in western Germany and the full premium associated with industry-level contracts in eastern Germany. Second, there remains a small, but statistically significant wage premium of about 2 per cent for industry-level contracts in western Germany and a similar premium for firm-level contracts in eastern Germany. The result that selection into industry-level contracts appears to be ...
Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp09043.pdfWage Insurance within German Firms: Do Institutions Matter?Nicole Guertzgen Centre for European Economic Research, Mannheim * July 2009Abstract Using a large linked employer-employee data set, this paper studies the extent to which employers insure workers against transitory and permanent firm-level shocks. Particular emphasis is given to the question of whether the amount of wage insurance depends on the nature of industrial relations. Adopting the identification strategy proposed by Guiso et al. (2005), it is shown that wage insurance is particularly apparent for individuals subject to collective wage agreements. While collective contracts alone are sufficient to fully insure workers against transitory shocks in small plants, they provide only partial insurance in medium-sized and large plants. At large employers, the joint existence of collective contracts and works councils helps to provide full insurance against transitory shocks, but provides only partial insurance against permanent shocks. This finding is consistent with the amount of insurance against permanent shocks being constrained by the possibility of considerable job losses and bankruptcy. Non-technical summary: Drawing on a large-scale German Linked EmployerEmployee data set, this paper studies the extent to which employers insure workers against firm-level shocks. Particular emphasis is given to the question of whether trade unions and works councils facilitate risk-sharing contracts between workers and firms. Given that the extent of insurance should critically depend on the frequency of the shock, we adopt the identification strategy proposed by Guiso et al. (2005), which enables us to distinguish between transitory and permanent shocks.In addressing the role of collective bargaining coverage for the amount of wage insurance, our results offer a remarkably consistent picture. Wage insurance is found to be particularly apparent for employers who are subject to collective wage agreements. Moreover, the ability of collective contracts to provide wage insurance appears to decrease with plant size. While in small plants (plant size ≤ 100 employees) collective contracts are sufficient on their own to fully insure workers against transitory shocks, they provide only partial insurance in medium-sized (100 < plant size ≤ 500) and large plants (plant size > 500). At large employers, the joint existence of c...
Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp06076.pdf Non-technical summaryWe present a model for the analysis of tax and transfer reforms that integrates a microsimulation labour supply module with an applied general equilibrium module.The labour supply module provides a detailed depiction of individual budget con- General equilibrium feedback further dampens the labour supply reactions through a fall in wages. The differences between the two versions with different aggregation levels are in general larger than those between the partial and the general equilibrium model. The labour supply changes in the different model versions range from 1.38% to 2.68%, which indicates that model choice is an important issue. Our preferred model, the disaggregated general equilibrium variant, is located at the lower bound of the range of labour market effects.
This article provides an overview of the IAB Job Vacancy Survey and its research potential. The IAB Job Vacancy Survey is a quarterly establishment survey covering the (un-)satisfied labor demand in Germany. This survey identifies the entire number of vacancies on the German labor market, including those vacancies that are not reported to the Federal Employment Agency. The main questionnaire obtains information about the number and structure of vacancies, future labor demand, the current economic situation and the expected development of participating establishments. In addition, the questionnaire collects information about the last new hiring and the last case of a failed recruitment process. Finally, the questionnaire enquires about employer attitudes and firms’ use of current labor market instruments. The Research Data Centre of the German Federal Employment Agency offers access to the data starting from the survey waves 2000 onwards.
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