Doing Well in Reforming the Labour Market? Recent Trends in Job Stability and Wages in Germany

Gianna Claudia Giannelli (), Ursula Jaenichen () and Thomas Rothe
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Ursula Jaenichen: Institute for Employment Research (IAB), Nuremberg

No 7580, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The German "employment miracle", with a weak decline in employment and low unemployment during the great recession, seems to be a good example for a successful labour market reform. Nevertheless, there are concerns about rising inequality in the labour market. In this paper we analyze the quality of newly started jobs between 1998 and 2010 using a huge administrative data set which allows us to look at job durations and earnings for different groups of workers. We discuss changes in the distributions of job durations and earnings over time, and present microeconometric models controlling for individual, firm and regional characteristics. Our results show a fairly constant level of overall job stability, but decreasing real wages and rising wage dispersion over time.

Keywords: real wages; job duration; job quality; labour market reforms; Germany; 1998-2010 (search for similar items in EconPapers)
JEL-codes: C34 C41 J31 J62 J68 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2013-08
New Economics Papers: this item is included in nep-eur, nep-lab, nep-lma and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Published - published as 'The evolution of job stability and wages after the implementation of the Hartz reforms 'in: Journal for Labour Market Research , 2016, 49, 269-294

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Working Paper: Doing well in reforming the labour market? Recent trends in job stability and wages in Germany (2013)
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