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This paper aims to provide a descriptive analysis of the changing patterns of labour market participation, non-participation and unemployment in Great Britain, Sweden and Germany. Since the mid 1970s, most European countries have experienced two parallel developments: on the one hand they have witnessed a huge growth in the proportion of women participating on the labour market. On the other however, they have experienced the return of mass unemployment and a growing insecurity of employment for those in work. In this paper, a typology of work histories is constructed using decade periods. Retrospective and panel data from Germany, Britain and Sweden are then used to compare the effects of different employment and welfare regimes on the proportions of respondents with different types of work histories and how these are combined with unemployment.
This paper analyzes empirically the distribution of unemployment durations in West- Germany before and after the changes during the mid 1980s in the maximum entitlement periods for unemployment benefits for elderly unemployed. The analysis is based on the comprehensive IAB employment subsample containing register panel data for about 500.000 individuals in West Germany. We analyze two proxies for unemployment since the data do not precisely measure unemployment in an economic sense. We provide a theoretical analysis of the link between the durations of nonemployment and of unemployment between jobs. Our empirical analysis finds significant changes in the distributions of nonemployment durations for older unemployed individuals. At the same time, the distribution of unemployment durations between jobs did not change in response to the reforms. Our findings are consistent with an interpretation that many firms and workers used the more bene cial laws as a part of early retirement packages but those workers who were still looking for a job did not reduce their search effort in response to the extension of the maximum entitlement periods. This interpretation is consistent with our theoretical model under plausible assumptions. JEL: C24, J64, J65
A number of authors have recently emphasized that the conventional model of unemployment dynamics due to Mortensen and Pissarides has difficulty accounting for the relatively volatile behavior of labor market activity over the business cycle. We address this issue by modifying the MP framework to allow for staggered multiperiod wage contracting. What emerges is a tractable relation for wage dynamics that is a natural generalization of the period-by-period Nash bargaining outcome in the conventional formulation. An interesting side-product is the emergence of spillover effects of average wages on the bargaining process. We then show that a reasonable calibration of the model can account well for the cyclical behavior of wages and labor market activity observed in the data. The spillover effects turn out to be important in this respect. JEL Classification: E32, E50, J64
Das vorliegende Arbeitspapier untersucht Ungleichheit aus verschiedenen interdisziplinären Perspektiven auf Ursachen und Implikationen.
Inhaltsverzeichnis:
Philipp Harms, Claudia Landwehr, Mario Scharfbillig, Daniel Schunk: Ungleichheit: Interdisziplinäre Perspektiven auf Ursachen und Implikationen - Einleitung
Konstantin M. Wacker: Warum wir Ungleichheit verringern müssen, um globale Armut bis 2030 zu beenden
Joachim Klose: Heimatverlust als Indikator zunehmender Ungleichheit
Gunnar Otte: Bildungsforschung und Bildungsreformen
Sibylle Kalmbach: Bildungsgerechtigkeit und Ungleichheit im Hochschulbereich – am Beispiel von Stipendien
Claudia Landwehr und Oliver Tüscher: Ursachen ungleicher politischer Beteiligung
Michael Edinger: Gleicher Zugang zur Macht? Über soziale Schließungsprozesse in der Politik
Sascha Huber: Wählermobilisierung und Ungleichheit in Deutschland: Ein Feldexperiment zur Steigerung der Wahlbeteiligung bei der Landtagswahl in Baden-Württemberg 2016
Tonio Rieger: Der ganzheitliche Ansatz zur Bekämpfung von Langzeitarbeitslosigkeit
This dissertation contains five independent chapters dealing with wage dispersion and unemployment. The first chapter deals with the explanation of international changes in wage inequality and unemployment in the 80s and 90s. Both theoretically and empirically, social benefits and its link to average income are blamed for the different experiences across countries. The second chapter discusses the search framework, to explain residual wage inequality and finds that institutional wage compression has ambiguous effects on employment. In the third chapter, we apply the theory to German data. We show that job-to-job transitions are important in explaining both frictions and career advances. In the fourth chapter, we empirically assess the relationship between wage dispersion and unemployment for homogeneous workers. We find that neither a frictional nor a neo-classical view in explaining this relationship are convincing. Unemployment within cells is not negatively correlated with wage dispersion. Finally, the last chapter builds a theoretical model which treats heterogeneous individuals in a production function framework and a frictional labor market. The model generates both wage dispersion within and between skill groups and both frictional and structural unemployment. In sum, the dissertation stresses the importance of modelling frictions to understand different types of wage inequality and unemployment.