Unemployment In Germany Research Articles

Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?

In this paper we study the economic effects of risk attitudes, time preferences, trust and reciprocity while we compare natives and second generation migrants. We analyze an inflow sample into unemployment in Germany, and find differences between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. We also find that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. We observe a significantly lower employment probability for individuals with a high willingness to take risks. Some evidence suggests that this result is channeled through reservation wages and search intensity.

Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?

In this paper we study the economic effects of risk attitudes, time preferences, trust and reciprocity while we compare natives and second generation migrants. We analyze an inflow sample into unemployment in Germany, and find differences between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. We also find that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. We observe a significantly lower employment probability for individuals with a high willingness to take risks. Some evidence suggests that this result is channeled through reservation wages and search intensity.

Strukturelle Arbeitslosigkeit: Eine Diagnose aus historischer Perspektive

Abstract Mass unemployment in Germany has built up since the seventies. There is, therefore, an urgent need to explore its historical background for an adequate diagnosis. This article starts from the hypothesis, that it is the inconsistency between the qualification profiles of the German production mode and the state of the labour market, which offers the main reason for structural unemployment in Germany since its beginning in the little world economic crises of the seventies. It has been the break down of fordism in German industry so the starting point of the analysis that opened up the gap between a large low qualification sector of a fordist labour market and a dramatically shrinking offer of this kind of jobs. After the global decline of fordist production German government stopped the recruitment of ‘guest workers’ in 1972. Notwithstanding this step, the share of unqualified labour continued to rise. It was not before the 1990s that the level of qualification was rising again. However, this process which is still going on is by far not fast enough to meet the classical pattern of post industrial quality production, which dominated German economic development before and after the fordist interlude.

Is parental unemployment related to an increased risk for stillbirths?

Although the association between employment status and health has been examined extensively, there is a paucity of research on the association between parental unemployment and the risk for stillbirth. The few existing studies did not access relevant confounders. We explored whether maternal, paternal or both parents’ employment status is related to stillbirth by comparing the stillbirth rates of professional mothers, fathers and couples to mothers, fathers and couples who were homemakers or unemployed, adjusting for maternal age, parity, nationality, chronic conditions, smoking, psychosocial stress and year of observation. Data on singletons born in the Federal State of Lower Saxony, Germany, (1990–1999), were routinely collected by gynecologists and midwives prospectively during pregnancy and after childbirth. Among 632,864 singletons, 297,880 were infants with one or two unemployed, homemaking or professional parents. Chi-square tests, bivariate and multivariable logistic regression models were performed. In bivariate logistic regression models, compared to infants of professional mothers, infants of housewives (OR = 2.58; 95% CI = 2.25, 2.96) and unemployed (OR = 2.06; 95% CI = 1.68, 2.53) mothers were at higher risks for stillbirth. Compared to infants of professional fathers, infants of male homemakers (OR = 2.41; 95% CI = 1.95, 2.99) and unemployed fathers (OR = 2.75; 95% CI = 2.41, 3.13) had higher risks for stillbirth. Infants of couples who both were working at home (OR = 3.65; 95% CI = 2.75, 4.84) or were unemployed (OR = 3.21; 95% CI = 2.37, 4.35) had higher risks for stillbirths than infants of professional couples. In multivariable logistic regression analyses, compared to infants of professional mothers, infants of housewives (OR = 1.64, 95% CI 1.39, 1.95) and unemployed mothers (OR = 1.55, 95% CI 1.20, 1.98) had increased risks for stillbirths. Compared to infants of professional fathers, infants of male homemakers (OR = 1.27, 95% CI 1.00, 1.62) and unemployed fathers (OR = 1.24, 95% CI 1.05, 1.47) were at higher risks for stillbirths. Stillbirth rates were increased for infants of couples who both were homemakers (OR = 1.61, 95% CI 1.13, 2.28) or unemployed (OR = 1.46, 95% CI 1.01, 2.11), compared to infants of professional couples. Both unemployment and homemaking statuses are associated with increased risks for stillbirth. In the context of mass unemployment in Germany, to improve infant health, unemployed and homemaking parents may be important target groups for pediatric health promotion strategies.

Oil and Unemployment in Germany

In this paper, we analyze oil price impacts on unemployment for Germany. Firstly, we survey theoretical and empirical literature on the oil-unemployment relationship and relate them to the German case. Secondly, we illustrate this issue within the framework of a vector autoregression (VAR) approach for Germany. For this purpose, we use three different specifications in order to adequately address the uncertainty related to the construction of an adequate oil variable. Using monthly data from 1973 to 2008, we show that oil price increases induce a rise in unemployment in the German labor market. Moreover, for a restricted sample period for post-unification Germany, we oppose claims that the oil to macroeconomy relationship has weakened since the 1980s. However, our results suggest that it has become more important to construct adequate measures of oil price variables.

Oil and Unemployment in Germany

Summary In this paper, we analyze oil price impacts on unemployment for Germany. Firstly, we survey theoretical and empirical literature on the oil-unemployment relationship and relate them to the German case. Secondly, we illustrate this issue within the framework of a vector autoregression (VAR) approach for Germany. For this purpose,we use three different specifications in order to adequately address the uncertainty related to the construction of an adequate oil variable. Using monthly data from 1973 to 2008, we show that oil price increases induce a rise in unemployment in the German labor market.Moreover, for a restricted sample period for post-unification Germany, we oppose claims that the oil to macroeconomy relationship has weakened since the 1980s. However, our results suggest that it has become more important to construct adequate measures of oil price variables.

Unemployment as a Social Norm in Germany

This paper investigates the relationship between the subjective well-being of both the employed and unemployed and regional unemployment rates. While both employed and unemployed men suffer from regional unemployment, unemployed men are significantly less negatively affected. This is consistent with a social norm effect of unemployment in Germany. We find no evidence of such an offsetting effect for women.

Strukturelle Arbeitslosigkeit: Eine Diagnose aus historischer PerspektiveStructural unemployment: A diagnosis in historical perspective

Mass unemployment in Germany has built up since the seventies. There is, therefore, an urgent need to explore its historical background for an adequate diagnosis. This article starts from the hypothesis, that it is the inconsistency between the qualification profiles of the German production mode and the state of the labour market, which offers the main reason for structural unemployment in Germany since its beginning in the little world economic crises of the seventies. It has been the break down of fordism in German industry so the starting point of the analysis that opened up the gap between a large low qualification sector of a fordist labour market and a dramatically shrinking offer of this kind of jobs. After the global decline of fordist production German government stopped the recruitment of ‘guest workers’ in 1972. Notwithstanding this step, the share of unqualified labour continued to rise. It was not before the 1990s that the level of qualification was rising again. However, this process which is still going on is by far not fast enough to meet the classical pattern of post industrial quality production, which dominated German economic development before and after the fordist interlude.

Empirical consequences of definitions: the case of unemployment in German register data

Definitionen und ihre empirische Folgen - ?Arbeitslosigkeit in deutschen Register Daten?. When using national register data for quantitative analysis, researchers depend on the quality of the data provided by the institu tions collecting the data. Data quality is strongly influenced by institutional set tings during data collection, e.g. underlying measurement concepts. Using the example of the duration of unemployment in Germany, this paper discusses the effects of the definition and their implementation on data quality. Therefore, two different definitions of (registered) unemployment are discussed. Imple menting them into register data derived from German Public Employment Ser vice, the effects of classifications on statistical results are shown.

Ethnicity, Job Search and Labor Market Reintegration of the Unemployed

This paper is based on recently collected and rich survey data of a representative sample of entrants into unemployment in Germany. Our data include a large number of migration variables, allowing us to adapt a recently developed concept of ethnic identity: the ethnosizer. To shed further light on the native-migrant differences in economic outcomes, we investigate the labor market reintegration, patterns of job search, and reservation wages across unemployed migrants and natives in Germany. Our results indicate that separated migrants have a relatively slow reintegration into the labor market. We explain this finding by arguing that this group exerts a relatively low search effort and that it has reservation wages which are moderate, yet still above the level which would imply similar employment probabilities as other groups of migrants.

Ethnicity, Job Search and Labor Market Reintegration of the Unemployed

This paper is based on recently collected and rich survey data of a representative sample of entrants into unemployment in Germany. Our data include a large number of migration variables, allowing us to adapt a recently developed concept of ethnic identity: the ethnosizer. To shed further light on the native-migrant differences in economic outcomes, we investigate the labor market reintegration, patterns of job search, and reservation wages across unemployed migrants and natives in Germany. Our results indicate that separated migrants have a relatively slow reintegration into the labor market. We explain this finding by arguing that this group exerts a relatively low search effort and that it has reservation wages which are moderate, yet still above the level which would imply similar employment probabilities as other groups of migrants.

Neuer Liberalismus und Faschismus: Liberaler Interventionismus und die Ordnung des Wettbewerbs

Abstract The focus of the article is on the academic and political-economic symbiosis between the origins of neoliberalism and the economics of fascism during the 1930s. This approach is crucial for answering open research questions such as the contribution of Ordnungspolitik to the efforts to overcome the world depression and mass unemployment in Germany and the new openness of conservative economic thinking toward the reform of liberalism in the thirties and, even more importantly, toward Soziale Marktwirtschaft after 1945. Furthermore the analysis of the very nature of liberal interventionism and competitive order underlines the special features of the German social market economy in comparison with current versions of neoliberalism.

Unemployment as a Social Norm in Germany

This paper investigates the relationship between the subjective well-being of both the employed and unemployed and regional unemployment rates. While employed men suffer from regional unemployment, unemployed men are significantly less negatively affected. This is consistent with a social-norm effect of unemployment in Germany. We find no evidence of such an offsetting effect for women.

Unemployment benefits and parental resources: what helps the young unemployed with labour market integration?

This article deals with the question of how different resources affect the labour market integration of the young unemployed. Previous research has often focused on the effects of unemployment compensation benefits on labour market outcomes. However, for young unemployed people additional parental resources may be even more important. The article examines the effects both of unemployment benefits and family-related resources. The main hypothesis it advances is that individuals who have access to different resources will enter more stable jobs after unemployment than those lacking such different kinds of support. Using data from a longitudinal study on youth unemployment in Germany, I find that subsequent job duration increases with the receipt of unemployment benefits but decreases with parental support. Accordingly, benefits actually improve post-unemployment job tenure, whereas parental support functions rather as a ‘safety net’ enabling young people to quit a job.

Benefit-Entitlement Effects and the Duration of Unemployment: An Ex-Ante Evaluation of Recent Labour Market Reforms in Germany

We analyse benefit-entitlement effects and the likely impact of the recent reform of the unemployment compensation system on the duration of unemployment in Germany on the basis of a flexible discrete-time hazard rate model estimated on pre-reform data from the German Socioeconomic Panel (SOEP). We find (i) relatively strong benefit-entitlement effects for the unemployed who are eligible to means-tested unemployment assistance after the exhaustion of unemployment benefit, but not for those without such entitlement; (ii) non-monotonic benefit-entitlement effects on hazard rates with pronounced spikes around the month of benefit-exhaustion, and (iii) relatively small marginal effects of the amount of unemployment compensation on the duration of unemployment. Our simulation results show that the recent labour market reform is unlikely to have a major impact on the average duration of unemployment in the population as a whole, but will significantly reduce the level of long-term unemployment among older workers.

Exact Prediction of Inflation and Unemployment in Germany

Potential links between inflation and unemployment in Canada have been examined. No consistent Phillips curve has been found likely due to strong changes in monetary policy of the Bank of Canada. However, there were two distinct periods where linear links between inflation and unemployment could exist - before 1983 and after 1983. A linear and lagged relationship between inflation, unemployment and labor force has been obtained for Canada. Similar relationships were reported previously for the USA, Japan, France and Austria. Changes in labor force level are simultaneously reflected in unemployment and lead inflation by two years. Therefore this generalized relationship provides a two-year ahead natural prediction of inflation based on current estimates of labor force level and unemployment rate. The goodness-of-fit for the relationship is of 0.7 for the period since 1965, i.e. including the periods of high inflation and disinflation.

Marginal Wage Subsidies: A Redistributive Instrument for Employment Creation

Critics of marginal wage subsidies claim that their inter-firm displacement effects eliminate their employment and fiscal advantages over general wage subsidies. We develop a model in which we show that the contrary is correct. Inter-firm displacement with marginal subsidies forces down prices and raises output and employment more than under general subsidies. Moreover, we show that marginal subsidization is less expensive for the public budget than general subsidies and that it serves as ar edistribution device by raising the labor share in the functional income distribution. A numerical illustration is used to support the theoretical results and to estimate their effects on unemployment in Germany.

The Use of Spatial Filtering Techniques: The Spatial and Space-Time Structure of German Unemployment Data

Socio-economic interrelationships among regions can be measured in terms of economic flows, migration, or physical geographically-based measures, such as distance or length of shared areal unit boundaries. In general, proximity and openness tend to favour a similar economic performance among adjacent regions. Therefore, proper forecasting of socio-economic variables, such as employment, requires an understanding of spatial (or spatio-temporal) autocorrelation effects associated with a particular geographic configuration of a system of regions. Several spatial econometric techniques have been developed in recent years to identify spatial interaction effects within a parametric framework. Alternatively, newly devised spatial filtering techniques aim to achieve this end as well through the use of a semi-parametric approach. Experiments presented in this paper deal with the analysis of and accounting for spatial autocorrelation by means of spatial filtering t! echniques for data pertaining to regional unemployment in Germany. The available data set comprises information about the share of unemployed workers in 439 German districts (the NUTS-III regional aggregation level). Results based upon an eigenvector spatial filter model formulation (that is, the use of orthogonal map pattern components), constructed for the 439 German districts, are presented, with an emphasis on their consistency over several years. Insights obtained by applying spatial filtering to the database are also discussed.

Gib und Nimm. Lokale Austauschnetzwerke zwischen sozialer Bewegung und Marktergänzung

In recent years there have been persistently high rates of unemployment in Germany. For mitigating the negative consequences of unemployment, informal economic activity seems an appropriate and valuable means. However due to modernization and structural changes the skills for engaging in homework decreased continuously. Thus this article discusses the potential of LET-Systems - a sophisticated form of barter - to facilitate self-help amongst the unemployed and as a source of welfare production. Though LET-Systems do not replace the formal market they can complement the market's supply in a reasonable way. As LET-Systems may overtake social political functions this article focuses on reasons for emergence and spreading of those systems and on mechanisms guaranteeing the systems' stability and survival.

Labor Courts, Nomination Bias, and Unemployment in Germany

Labor courts play an important role in determining the effective level of labor market regulation in Germany, but their application of law may not be even-handed. Based on a simple theoretical model and a new panel data set, we identify a nomination bias in labor court activity - that is, court activity varies systematically with the political leaning of the government that has appointed judges. In an extension, we find a significant positive relation between labor court activity and unemployment, even after controlling for the endogeneity of court activity. The results have potentially important policy implications regarding the independence of the judiciary and labor market reforms.