Inter-industry labor flows
28 June 2016
Labor flows across industries reallocate resources and diffuse knowledge among economic activities. However, surprisingly little is known about the structure of such inter-industry flows. Using German social security data, we generate stylized facts about inter-industry Labor mobility and explore its consequences.
IAB-Discussion Paper 21/2016
Identifying macroeconomic effects of refugee migration to Germany
17 June 2016
This study investigates impacts of migration on the German economy, explicitly distinguishing refugee and non-refugee immigration. We propose a macroeconometric modelling approach complemented by instrumental variable techniques. We find that non-refugee immigration has more beneficial medium-run effects on GDP and the labour market.
IAB-Discussion Paper 20/2016
Firms and labor market inequality
15 June 2016
The authors review the literature on firm-level drivers of labor market inequality. There is strong evidence from a variety of fields that standard measures of productivity — like output per worker or total factor productivity — vary substantially across firms, even within narrowly-defined industries. Several recent studies note that rising trends in the dispersion of productivity across firms mirror the trends in the wage inequality across workers.
IAB-Discussion Paper 19/2016
Does marginal employment promote regular employment for unemployed welfare benefit recipients in Germany?
14 June 2016
Marginal employment (ME) is one of the largest forms of atypical employment in Germany. In this study, the authors analyse whether ME has a “stepping stone” function for unemployed individuals, i.e., whether ME increases the subsequent probability of regular employment. This study adds to the literature in the following ways. First, compared to previous studies, it analyses the “stepping stone” function for a more recent time period, i.e., after Germany’s major labour-market reforms (Hartz reforms) at the beginning of the 2000s. Second, the authors use a new administrative data source which includes previously unavailable information on desired labour supply and household composition. Third, they follow recent methodological developments in the evaluation literature by applying a dynamic evaluation approach that has not previously been used to analyse marginal employment.
IAB-Discussion Paper 18/2016
Exchange Rate Effects of a Potential Brexit on German-UK Bilateral Trade
07 June 2016
On June 23rd the United Kingdom and Gibraltar will hold a referendum whether to stay in the European Union or not. The topic of what the consequences may be is rather large spanning many aspects of social, political and economic life. In this current report we look at bilateral German-UK trade and its short-run sensitivity to exchange rate fluctuations. We look at the trade numbers and explain what this sen-sitivity means.
Current Report 11/2016
Revision of the IAB Job Vacancy Survey
07 June 2016
The German Job Vacancy Survey delivers representative data on the number and structure of vacancies in Germany. Such data cannot be derived from other sources and are therefore unique. The survey includes registered and non-registered vacancies. In course of extensive tests and reviews a new extrapolation procedure has been developed. As a result, the aggregate number of vacancies is revised downwards.
The research report is organised as follows: Firstly, an overview about the aim and content of the German Job Vacancy Survey is given. Subsequently, the evolution of the new extrapolation procedure is described. Thirdly, the new method is presented and it is shown that the adaption of it significantly improves the quality of the Survey results.
Essays on matching processes and effects of institutional changes on regional and occupational labour markets
18 May 2016
The functioning of the labour market and the impact of labour market policies are a long-standing issue in social and political debate. In this respect, labour market research acquires the necessary knowledge and often receives impulses from labour market policy. Conversely, progress in the development of research methods and data mining encourages labour market policymakers to ask new questions that have not been answered yet.
Michael Stops picks up such developments and focusses on the following three issues:
Occupational mobility and the job matching Efficiency; The development of job matching efficiency on partial occupational markets before, during and after the years of the German labour market reforms 2003–2005; The employment effect of the National Minimum Wage in the United Kingdom 1999–2012.
Causes and consequences of the gender-specific migration from East to West Germany
18 May 2016
Although the German reunification took place 25 years ago, differences between East and West Germany are still present. Many people reacted to the differences in living standards and living chances between East and West Germany by migrating to the West. This book investigates not only the crucial individual and structural factors for the gender-specific migration of men and women, but also the consequences of the East–West migration in Germany. It is asked: How does migration influence individual incomes? Are East–West migrants happier? Those questions are answered with the focus on gender-specific differences in the migration behavior.
Occupation coding during the interview
18 May 2016
Currently, most surveys ask for occupation with open-ended questions. The verbatim responses are coded afterwards, which is error-prone and expensive. The authors describe an alternative approach that allows occupation coding during the interview. The new technique utilizes a supervised learning algorithm to predict candidate job categories.
IAB-Discussion Paper 17/2016
Occupation-specific matching Efficiency
13 May 2016
Based on rich administrative data from Germany, we address the differences in occupation specific job-matching processes where an occupation consists of jobs that share extensive commonalities in their required skills and tasks. These differences can be explained by the degree of standardization (determined by the existence of certifications or legal regulations) in an occupation and the diversity of tasks in an occupation. We find that the matching efficiency improves with higher degrees of standardization and lower task diversity. We discuss the possible mechanisms of these empirical findings in a search theoretic model: as the standardization of an occupation increases or the diversity of tasks decreases, search costs decrease and the optimal search intensity increases. However, the model reveals that higher search intensities can have positive or negative effects on the matching efficiency. We discuss the conditions under which the empirical results can be predicted.
IAB-Discussion Paper 16/2016
Do minimum wages increase job satisfaction?
10 May 2016
On 1 January 2015 a new statutory minimum wage of EURO 8.50 per hour of work was introduced in Germany. Using a difference-in-differences approach, we estimate effects on worker-level outcomes of continuing employees. The results reveal a meaningful absolute increase in the affected workers' pay satisfaction. The increase in job satisfaction is modest and predominantly driven by changes in pay satisfaction implying only a small effect on all other dimensions of job satisfaction. Moreover, effects from the minimum wage on work engagement and turnover intention are virtually zero.
IAB-Discussion Paper 15/2016
Management practices, workforce selection, and productivity
03 May 2016
Recent research suggests that much of the cross-firm variation in measured productivity is due to differences in use of advanced management practices. Many of these practices – including monitoring, goal setting, and the use of incentives – are mediated through employee decision-making and effort. To the extent that these practices are complementary with workers’ skills, better-managed firms will tend to recruit higher-ability workers and adopt pay practices to retain these employees.
IAB-Discussion Paper 14/2016