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Disentangling sector and status effects in German employment growth

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  • Sabine Klinger
  • Katja Wolf

Abstract

From 1992 to 2006, part-time employment in western Germany has grown by 83%, whereas full-time employment has shrunk by 15%. In addition, employment schemes vary substantially across industries and industries which are themselves developed differently. The paper analyses the extent to which the divergence of status-specific employment can be explained by factors inherent in full-time or part-time employment (status effect) or by changes in the sectoral composition (sector effect). A regression-analogue shift--share model is estimated. Economic variables like unit labour costs and output gap are controlled. As a dynamic panel data model is specified, a bias-corrected least squares dummy variable estimator is used. In a second step, the fixed effects of the estimation into parameters for employment status and 16 sectors are decomposed. The results show that status-specific characteristics dominantly explain changes in employment patterns.

Suggested Citation

  • Sabine Klinger & Katja Wolf, 2009. "Disentangling sector and status effects in German employment growth," The Service Industries Journal, Taylor & Francis Journals, vol. 31(8), pages 1257-1278, September.
    • Handle: RePEc:taf:servic:v:31:y:2009:i:8:p:1257-1278
    DOI: 10.1080/02642060903437006
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    5. Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie E., 2004. "The Determinants of Part-Time Work in EU Countries: Empirical Investigations with Macro-Panel Data," IZA Discussion Papers 1361, Institute of Labor Economics (IZA).
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    Cited by:

    1. Holtemöller, Oliver & Irrek, Maike & Schultz, Birgit, 2012. "A Federal Long-run Projection Model for Germany," IWH Discussion Papers 11/2012, Halle Institute for Economic Research (IWH).

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