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

35 Pages Posted: 7 Sep 2013

See all articles by Gianna Claudia Giannelli

Gianna Claudia Giannelli

University of Florence - Dipartimento di Studi sullo Stato; IZA Institute of Labor Economics

Ursula Jaenichen

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Thomas Rothe

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

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: labour market reforms, job quality, job duration, real wages, Germany, 1998-2010

JEL Classification: C34, C41, J31, J62, J68

Suggested Citation

Giannelli, Gianna Claudia and Jaenichen, Ursula and Rothe, Thomas, Doing Well in Reforming the Labour Market? Recent Trends in Job Stability and Wages in Germany. IZA Discussion Paper No. 7580. Available at SSRN: https://ssrn.com/abstract=2322085

Gianna Claudia Giannelli (Contact Author)

University of Florence - Dipartimento di Studi sullo Stato ( email )

Via S. Caterina d'Alessandria 3
Firenze 50129
Italy
+39-055-4622926 (Phone)
+39-055-472102 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ursula Jaenichen

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

Thomas Rothe

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

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