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The evolution of job stability and wages after the implementation of the Hartz reforms
[Die Entwicklung von Beschäftigungsstabilität und Löhnen seit Einführung der Hartz-Reformen]

Author

Listed:
  • Gianna C. Giannelli

    (University of Florence
    IZA)

  • Ursula Jaenichen

    (IAB)

  • Thomas Rothe

    (IAB)

Abstract

We address the concerns about rising inequality in the German labour market after the implementation of the Hartz reforms between 2003 and 2005. We focus on the quality of new jobs started between 1998 and 2010 in West Germany in terms of job stability and level of earnings. Using social security data drawn from the Integrated Employment Biographies, we analyse the distributions of job durations and wages and model their determinants at the worker level. Our results show a high degree of job stability during and after the reform years, decreasing wage levels and increasing wage dispersion.

Suggested Citation

  • Gianna C. Giannelli & Ursula Jaenichen & Thomas Rothe, 2016. "The evolution of job stability and wages after the implementation of the Hartz reforms [Die Entwicklung von Beschäftigungsstabilität und Löhnen seit Einführung der Hartz-Reformen]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(3), pages 269-294, November.
    • Handle: RePEc:spr:jlabrs:v:49:y:2016:i:3:d:10.1007_s12651-016-0209-x
    DOI: 10.1007/s12651-016-0209-x
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    Cited by:

    1. Martin Kroczek, 2021. "Analyzing Nurses‘ Decisions to Leave Their Profession – a Duration Analysis," IAW Discussion Papers 136, Institut für Angewandte Wirtschaftsforschung (IAW).
    2. Eric Schuss & Mohammed Azaouagh, 2023. "The expansion of early childcare and transitions to first and second birth in Germany," Bulletin of Economic Research, Wiley Blackwell, vol. 75(2), pages 476-507, April.
    3. Gehrke, Britta & Weber, Enzo, 2018. "Identifying asymmetric effects of labor market reforms," European Economic Review, Elsevier, vol. 110(C), pages 18-40.
    4. Katharina Dengler & Katrin Hohmeyer & Cordula Zabel, 2021. "Welfare recipients’ transition into employment and employment stability in Germany," LABOUR, CEIS, vol. 35(4), pages 450-484, December.
    5. Gartner, Hermann & Rothe, Thomas & Weber, Enzo, 2019. "The Quality-Weighted Matching Function: Did the German Labour Market Reforms Trade off Efficiency against Job Quality?," IAB-Discussion Paper 201924, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Sergei Hoxha & Alfred Kleinknecht, 2024. "When structural reforms of labor markets harm productivity. Evidence from the German IAB panel," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(3), pages 541-554.
    7. Maria Carmen Martinez & Frida Marina Fischer, 2019. "Work Ability and Job Survival: Four-Year Follow-Up," IJERPH, MDPI, vol. 16(17), pages 1-11, August.

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    More about this item

    Keywords

    Hartz reforms; Job duration; Wage inequality;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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