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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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    2. Wanger, Susanne, 2006. "Arbeitszeitpolitik: Teilzeitarbeit fördert Flexibilität und Produktivität," IAB-Kurzbericht 200607, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Wachter, Till von, 2001. "Employment and productivity growth in service and manufacturing sectors in France, Germany and the US," Working Paper Series 50, European Central Bank.
    4. Wachter, T.V., 2001. "Employment and Productivity Growth in service and Manufacturing Sectors in France, Germany and US," Papers 50, Quebec a Montreal - Recherche en gestion.
    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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