Disentangling sector and status effects in German employment growth

Sabine Klinger () and Katja Wolf

The Service Industries Journal, 2009, vol. 31, issue 8, 1257-1278

Abstract: From 1992 to 2006, part-time employment in western Germany has grown by 83%, whereas full-time employment has shrunk by 15%. In addition, employment schemes vary substantially across industries and industries which are themselves developed differently. The paper analyses the extent to which the divergence of status-specific employment can be explained by factors inherent in full-time or part-time employment (status effect) or by changes in the sectoral composition (sector effect). A regression-analogue shift--share model is estimated. Economic variables like unit labour costs and output gap are controlled. As a dynamic panel data model is specified, a bias-corrected least squares dummy variable estimator is used. In a second step, the fixed effects of the estimation into parameters for employment status and 16 sectors are decomposed. The results show that status-specific characteristics dominantly explain changes in employment patterns.

Date: 2009
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DOI: 10.1080/02642060903437006

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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