Occupational Upgrading and the Business Cycle in West Germany

Büttner, Thomas; Jacobebbinghaus, Peter; Ludsteck, Johannes

doi:10.5018/economics-ejournal.ja.2010-10

Cited by 13 publications

(14 citation statements)

References 15 publications

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“…As the labour market worsens those from a disadvantaged background are affected the most. The way in which they are affected also depends on their qualifications which is consistent with the crowdingout hypothesis (Buttner et al, 2010;Devereux, 2002). Those with higher qualifications are bumped down to jobs that pay less well.…”

Section: Explanations: Overqualification and Social Networksupporting

confidence: 66%

“…At times of low unemployment there is very little difference in the type of job depending on background, but this gap widens to more than 10 percentage points as the 29 unemployment rate rises. This is consistent with a bumping down of the disadvantaged young adults (Buttner et al, 2010;Humburg et al, 2012;Reder, 1955).…”

Section: Explanations: Overqualification and Social Networksupporting

confidence: 66%

“…Reder (1955) proposed that employers react to the business cycle by lowering their hiring standards when demand outstrips supply and by increasing the hiring standards when supply is larger than demand. Pollman-Schult (2005) and Buttner et al (2010) confirm this for Germany.…”

Section: Conceptual Frameworksupporting

confidence: 63%

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A Disadvantaged Childhood Matters More If Local Unemployment is High

Zwysen

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractUsing multilevel models on the German Socio-Economic Panel Study this paper shows that disadvantaged young adults (16-35 years old) are more affected by the business cycle than their similarly educated counterparts from more advantaged backgrounds. We propose that a disadvantaged background lowers desirability on the labour market, which matters more to employers as the labour market tightens. When the local unemployment rate is high, young adults from a disadvantaged background are less likely to be hired for good jobs or hired at all than their more advantaged counterparts. These results are robust to different operationalisations and sibling fixed effects.

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Section: Explanations: Overqualification and Social Networksupporting

confidence: 66%

Section: Explanations: Overqualification and Social Networksupporting

confidence: 66%

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A Disadvantaged Childhood Matters More If Local Unemployment is High

Zwysen

2014

SSRN Journal

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“…During the recession low-skilled workers are more likely to be fired as their training and hiring costs are lower for firms. In previous research Devereux (2002) and Büttner et al (2010) use the demand side and Reder hypothesis (Reder, 1955) to explain the cyclical behaviour of occupational upgrading. Büttner et al (2010) provide empirical evidence that despite the institutional differences between the USA and German labour markets, a change in hiring standards depends on the business cycle.…”

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confidence: 99%

Occupational mobility over the business cycle

Roosaar

Mõtsmees

Varblane

2014

International Journal of Manpower

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Purpose -The purpose of this paper is to examine how occupational mobility varies over the business cycle and how selected factors contribute to occupational mobility in different stages of the business cycle. Design/methodology/approach -Using annual micro data from the Estonian Labour Force Survey (2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010) and implementing probit models with interaction terms, the paper investigates occupational mobility as a change of occupation in two successive years during recovery, boom and recession periods. Findings -The analysis indicates that occupational mobility is higher during the recovery and boom periods and lower during the recession stage. The demographic characteristics (gender, marital status, knowledge of local language) influence the probability for occupational change during the recovery stage of the business cycle. The position of employees in the occupational hierarchy is significant during the recovery and boom periods. Employees working in the public sector have a lower probability for occupational change compared with private sector employees during the recession. Training has a positive effect on occupational mobility during recession. Tenure reduces the probability of occupational mobility over the whole business cycle. Originality/value -The paper contributes to the literature by providing new results about the role of different factors of occupational mobility over the business cycle. This is among the few studies addressing the variation in the occupational mobility of employees from the public and private sectors. Interactions between the position of the employees in the occupational hierarchy and the ownership form of their employers and the economic sectors add to the understanding about the mechanism of occupational mobility over the business cycle stages.

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“…Firms are willing to accept less qualified applicants in periods of high employment, due to greater hiring competition and a smaller applicant pool. The latter is extensively documented for multiple labor markets, even those that differ considerably in their institutional features, like the US and Germany [7].…”

Section: Hiring Standards Over the Business Cyclementioning

confidence: 99%

Efficiency wages: Variants and implications

Schlicht¹

2016

izawol

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1 ElEVatOr PitchHigher wages increase labor costs but also improve the productivity of the labor force in several ways. If firms take this into account and set their wages accordingly, the resulting wages could fail to adjust demand and supply but may induce phenomena like over-education, discrimination, regional wage differentials, and a tendency for larger firms to pay higher wages. All these phenomena are quantitatively important and well-established empirically. Efficiency wage theory provides an integrated theoretical explanation rather than a sundry list of reasons, and offers an efficiency argument for progressive income taxation. aUthOr'S MaiN MESSaGELabor markets are usually treated like commodity markets, where quality is well-defined and demand and supply are equated by price. However, wages, unlike prices, serve several further functions that affect profitability beyond attracting workers. With higher wages, more demanding hiring standards can be implemented and better workers hired, labor turnover and associated turnover costs can be reduced, and better worker attitudes can be kindled. The efficiency wage approach leads to a unified understanding of some important empirical phenomena and entails some unorthodox policy conclusions, such as the idea that progressive taxation enhances efficiency. Efficiency wages: Variants and implicationsWages affect productivity and non-wage costs; this carries important labor market and policy implications

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Occupational Upgrading and the Business Cycle in West Germany

Cited by 13 publications

References 15 publications

A Disadvantaged Childhood Matters More If Local Unemployment is High

A Disadvantaged Childhood Matters More If Local Unemployment is High

Occupational mobility over the business cycle

Efficiency wages: Variants and implications

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