Structural Unemployment in Selected Countries
27 February 2015
Structural – or non-cyclical – unemployment is a consequence of mismatch between worker and job profiles, institutional conditions or persistent economic shocks. There is no convention how to measure structural unemployment. The following country re-ports sketch the specific situation based on national statistics. Nonetheless, it becomes clear that low qualification, skill depreciation during long unemployment spells, and regional disparity or structural imbalances are important aspects to consider when combating structural unemployment. Typically, the individual barriers to re-integration into the labour market are manifold which necessitates specifically tailored policy measures. However, the most efficient policy would be prevention.
This report introduces basics on structural unemployment in some member countries of the International Labour Market Forecasting Network. The Network is a cooperation of forecasters and policy advisors related to Public Employment Services. The following contributions were presented on the annual meeting 2014.
Current report: Structural Unemployment in Selected Countries
Do changes in regulation affect temporary agency workers' job satisfaction?
18 February 2015
This paper evaluates the impact on temporary agency workers' job satisfaction of a reform that considerably changed regulations covering the temporary help service sector in Germany. We isolate the causal effect of this reform by combining a difference- in-difference and matching approach and using rich survey data. We find that the change of the law substantially decreased agency workers' job satisfaction while regular workers' job satisfaction remained unchanged. Further analysis reveals that the negative effect on agency workers' job satisfaction can be attributed to a decrease in wages and an increase in perceived job insecurity.
IAB-Discussion Paper 8/2015
Intra-regional economic integration
17 February 2015
Regional clusters have attracted a great deal of attention for more than two decades. The interest comes from two major fields: regional economics and regional economic policy. At the interface between research and policy, the cluster-oriented regional information system CORIS is located. This research project generates information on supply chains, clusters, cluster participants and their embeddedness in two Bavarian regions. It provides a unique data source used for analyses in the present publication.
Offshoring of medium-skill jobs, polarization, and productivity effect
13 February 2015
We examine the effects of endogenous offshoring on cost-efficiency, wages and unemployment in a task-assignment model with skill heterogeneity. Exact conditions for the following insights are derived. The distributional effect of offshoring (high-) low-skill-intensive tasks is similar to (unskilled-) skill-biased technology changes, while offshoring medium-skillintensive tasks induces wage polarization. Offshoring improves cost-efficiency through international task reallocation and puts a downward pressure on all wages through domestic skill-task reallocation. If elasticities of task substitution are low (high), the downward pressure on wages in neighboring skill segments is low (high) with a net effect of higher (lower) wages and employment.
IAB-Discussion Paper 7/2015
Higher wages or lower expectations?
10 February 2015
Labour shortages are a field of research that has been investigated quite thoroughly. The reactions of firms facing problems during the hiring process are, however, largely neglected in empirical literature. Our research will fill this empirical gap and shed light on the question of whether reactions according to the neoclassical theory or to the Reder Hypothesis are more common in reality.
IAB-Discussion Paper 6/2015
The productivity effect of migrants
06 February 2015
Empirical evidence for the US shows that migrants increase the productivity of regions. To explain the impact of migrants on the average firm productivity we construct a general equilibrium model with monopolistic competition a la Melitz (2003). We consider heterogeneous firms with different productivity levels and imperfect substitutability between migrants and natives. This gives rise to wage differences between natives and migrants.
IAB-Discussion Paper 5/2015
What could all the money do?
27 January 2015
Publically sponsored further trainings for the unemployed are an important measure of active labour market policies (ALMP) in Germany. Current discussions within this context also focus on the willingness to participate, which is an important prerequisite for the success of the programs. Financial incentives may foster both participation and successful completion, thereby reducing opportunity costs of these measures. We investigate the question what factors determine the motivation to participate by conducting a CATI survey among around 4.000 unemployed persons from the unemployment insurance system (Social Code III) and the means-tested basic income support system for needy recipients (Social Code II). We use a factorial survey - also known as vignette analysis - in combination with administrative data of the Federal Employment Agency (FEA), the latter providing detailed information about the individual labour market history.
IAB-Discussion Paper 4/2015
Exports, agglomeration and workforce diversity
21 January 2015
In this paper, the authors ask whether German firms (i. e., establishments) benefit from localization and urbanization externalities and face higher export proportions. They also control for a variety of establishment characteristics and workforce diversity. For this purpose, a comprehensive German data set that combines survey data and administrative data is used.
IAB-Discussion Paper 3/2015
Revisiting German labour market reform effects
20 January 2015
There is an ongoing discussion that centres on the German labour market reforms (2003-2005) and the role of these reforms in boosting the German economy. Considering that one of the main objectives of the reforms was to improve the matching process on the labour market, the author uses rich, high-frequency, and recent administrative panel data to present new details regarding the development of job-matching performance before and after the reform years.
IAB-Discussion Paper 2/2015
The effect of hiring subsidies on regular wages
09 January 2015
What happens to the wages of regular workers in establishments subsidized with hiring subsidies? Does hiring programme participants result in windfalls that are distributed among regular workers? Do these reduce their wage demands to avoid being substituted by subsidized workers? Using linked employer-employee data from Germany, I estimate the effects of subsidizing an establishment on regular workers' wages using spell fixed effects regression. I find that hiring subsidy schemes do increase the daily wages of regular workers by up to almost one per cent in the manufacturing sector. These effects are limited to large establishments and abovemedian local unemployment rates.
IAB-Discussion Paper 1/2015
Journal for Labour Market Research 4/2014
07 January 2015