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Persistence and the German Unemployment Problem: Empirical Evidence on German Labour Market Flows

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  • Schmidt, Christoph M

Abstract

Using a retrospective monthly calendarium of individuals' major economic activities, this paper characterizes the monthly employment and unemployment rates and the monthly transition intensities between the states of employment, unemployment, and out-of-the-labor- force for the German labor market between January/February 1983 and November/December 1994. The analysis provides a detailed portrait for demographic cells defined by gender, three age groups, and three education groups. Overall, the German labor market displays a high level of persistence, but important differences exist across demographic groups. By contrast, almost no changes can be observed across time, apart from a drastic decrease of male job finding rates during the early 1990s. When compared to France, the German labor market does not appear to be excessively rigid, although the differences with the fluid US labor market are very substantial.

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  • Schmidt, Christoph M, 1999. "Persistence and the German Unemployment Problem: Empirical Evidence on German Labour Market Flows," CEPR Discussion Papers 2057, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2057
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    Cited by:

    1. Bachmann, Ronald & Schaffner, Sandra, 2009. "Biases in the measurement of labour market dynamics," Technical Reports 2009,12, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    2. repec:hum:wpaper:sfb649dp2009-017 is not listed on IDEAS
    3. Ben J Heijdra & Christian Keuschnigg & Wilhelm Kohler, 2014. "Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 2, pages 37-83, World Scientific Publishing Co. Pte. Ltd..
    4. Brian Bell & James Smith, 2002. "On gross worker flows in the United Kingdom: evidence from the Labour Force Survey," Bank of England working papers 160, Bank of England.
    5. Ronald Bachmann & Peggy Bechara, 2019. "The Importance of Two‐Sided Heterogeneity for the Cyclicality of Labour Market Dynamics," Manchester School, University of Manchester, vol. 87(6), pages 794-820, December.
    6. M. K. Jones & R. J. Jones & P. L. Latreille & P. D. Murphy & P. J. Sloane, 2013. "A regional analysis of flows into and out of the UK national minimum wage," Applied Economics, Taylor & Francis Journals, vol. 45(21), pages 3074-3087, July.
    7. repec:dgr:rugccs:200213 is not listed on IDEAS
    8. Snower, Dennis J. & Merkl, Christian, 2006. "The Caring Hand that Cripples: The East German Labor Market After Reunification (Detailed Version)," IZA Discussion Papers 2066, Institute of Labor Economics (IZA).
    9. Bertrand Lhommeau & Véronique Rémy, 2009. "Les politiques d’allégements ont-elles un effet sur la mobilité salariale des travailleurs à bas salaire ?," Économie et Statistique, Programme National Persée, vol. 429(1), pages 21-49.
    10. Matthias S. Hertweck & Oliver Sigrist, 2012. "The Aggregate Effects of the Hartz Reforms in Germany," Working Paper Series of the Department of Economics, University of Konstanz 2012-38, Department of Economics, University of Konstanz.
    11. Ben J. Heijdra & Christian Keuschnigg, 2000. "Integration and Search Unemployment: An Analysis of Eastern EU Enlargement," CESifo Working Paper Series 341, CESifo.
    12. repec:hum:wpaper:sfb649dp2005-045 is not listed on IDEAS
    13. Bachmann, Ronald, 2005. "Labour market dynamics in Germany: Hirings, separations, and job-to-job transitions over the business cycle," SFB 649 Discussion Papers 2005-045, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.

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    More about this item

    Keywords

    Labour Market States; Transitions; Unemployment Duration;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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