Job and Worker Turnover in German Establishments

29 Pages Posted: 13 Jun 2018

See all articles by Lutz Bellmann

Lutz Bellmann

Institute for Employment Research (IAB); Institute for the Study of Labor (IZA)

Hans-Dieter Gerner

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

Richard Upward

University of Nottingham - School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 2018

Abstract

We use a simple nonparametric regression approach to measure the relationship between employment growth, hirings and separations in a large panel of German establishments over the period 1993–2014. Although it is often claimed that firms in Europe have less flexibility in their ability to hire and fire, we find that the relationship between employment growth and worker flows in German establishments is very similar to the behaviour of U.S. establishments. The relationship is stable over time, even during the 2008–9 economic crisis and across different types of establishment. We verify our results with independent measures from administrative data. We suggest that this result is due to: the strong relationship between employment reductions and voluntary separations; the low level of ‘churning’; and the heterogeneity of jobs within establishments.

Suggested Citation

Bellmann, Lutz and Gerner, Hans-Dieter and Upward, Richard, Job and Worker Turnover in German Establishments (July 2018). The Manchester School, Vol. 86, Issue 4, pp. 417-445, 2018. Available at SSRN: https://ssrn.com/abstract=3194918 or http://dx.doi.org/10.1111/manc.12187

Lutz Bellmann (Contact Author)

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany
+49 911 179 3046 (Phone)
+49 911 179 3297 (Fax)

Institute for the Study of Labor (IZA)

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

Hans-Dieter Gerner

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

Regensburger Str. 104
Nuremberg, 90478
Germany

Richard Upward

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 951 5151 (Phone)
+44 115 951 4159 (Fax)

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