Unemployment, wages, and the impact of active labour market policies in a regional perspective = Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief

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1. Verfasser: Hilbert, Christoph (VerfasserIn)
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adam_text Contents Preface.............................................................................................................................1 Contents...........................................................................................................................1 List of tables....................................................................................................................8 List of figures................................................................................................................11 Abbreviations and acronyms.......................................................................................12 1 Introduction..........................................................................................................15 2 Theories of unemployment, wages, and the role of regions..............................25 2.1 Macroeconomic explanations of unemployment...................................................26 2.1.1 The classics.........................................................................................................................26 2.1.2 Keynes and the neoclassical synthesis................................................................................26 2.1.3 Monetarism.........................................................................................................................27 2.1.4 New classical macroeconomics..........................................................................................28 2.1.5 New Keynesian economics.................................................................................................29 2.1.6 The imperfect competition approach to macroeconomics..................................................29 2.2 Modern theories of unemployment: Rigidities, regions, and institutions...........30 2.2.1 The role of wage rigidities in the explanation of unemployment.......................................30 2.2.2 Four factors preventing the underbidding of wages............................................................32 2.2.3 Why do regions matter? New economic geography...........................................................36 2.2.4 Explaining unemployment differences between regions....................................................39 2.2.5 The role of institutions and labour market policies............................................................40 23 The wage curve - a new law in labour economics?...............................................41 2.3.1 The basic concept of the wage curve..................................................................................41 3 2.3.2 A short review of empirical studies from fifteen years of wage curve research.................43 2.3.3 Explanation of unemployment and wages in a macroeconomic framework......................45 2.3.4 Alternative non-competitive micro models explaining the wage curve..............................46 2.4 An efficiency wage model explaining wage curves................................................49 2.4.1 The standard model............................................................................................................49 2.4.2 Main implications...............................................................................................................51 2.5 Implications of qualifications on the wage curve..................................................52 2.5.1 Variation in effort...............................................................................................................53 2.5.2 Variation in shirking...........................................................................................................54 2.6 An extended wage curve model with improved matching by active labour market policies......................................................................................................... 56 2.7 Management by objectives in regional public employment services---------------59 2.7.1 Theoretical background......................................................................................................60 2.7.2 Design of the performance indicator..................................................................................62 2.8 An efficiency model of performance-based wage curves......................................65 2.9 Conclusion................................................................................................................66 3 Design and definitions..........................................................................................67 3.1 What defines the borders of a region? Labour markets in Germany.................68 3.2 Data...........................................................................................................................74 3-3 On the definition of qualifications..........................................................................78 3.4 ALMP instruments..................................................................................................85 3.5 Conclusion................................................................................................................88 4 Do regions matter? Descriptive evidence...........................................................91 4.1 Stylized facts on regions_______________.____________________________91 4 4.1.1 The regional pattern in Europe...........................................................................................91 4.1.2 How does Germany compete interregionally?....................................................................94 4.2 Qualifications, income, and regions.......................................................................98 4.2.1 School degree.....................................................................................................................98 4.2.2 Vocational position...........................................................................................................102 4.2.3 Occupation........................................................................................................................105 4.2.4 Firm size...........................................................................................................................108 4.2.5 The role of economic branches.........................................................................................110 4.3 Active labour market policies and unemployment in regions............................113 4.3.1 Regional variation of ALMP measures............................................................................113 4.3.2 The east-west pattern........................................................................................................115 4.3.3 Variation of active measures between regions..................................................................116 4.4 Conclusion..............................................................................................................118 5 Is there a German wage curve? Evidence from the German Socio-economic Panel.....................................................................................................................121 5.1 Sample description.................................................................................................121 5.2 Econometric modelling..........................................................................................124 5.2.1 The standard equation.......................................................................................................124 5.2.2 The simultaneity problem.................................................................................................124 5.2.3 The Moulton problem and its consequences.....................................................................125 5.2.4 Fixed and random effects.................................................................................................126 5.2.5 Generalized least squares (GLS)......................................................................................126 5.2.6 Individual panel estimation...............................................................................................127 S3 Is there a standard wage curve in Germany?...................................................127 5.3.1 The functional form of the unemployment rate................................................................128 5.3.2 Wage curves in different regional aggregates...................................................................130 5.3.3 Standard wage curves and other controls.........................................................................132 5.3.4 Standard wage curves for different labour market specifications.....................................135 5.3.5 Robustness check of reversed causality............................................................................137 5.3.6 Regional unemployment and commuting.........................................................................138 5.4 Conclusion..............................................................................................................140 6 Qualification-specific analyses of regional unemployment and wages..........143 6.1 A motivation for the analysis of qualification subgroups...................................143 6.2 Supply-specific aspects of qualifications______________________________145 6.2.1 Wage curves by school degree.........................................................................................145 6.2.2 Wage curves by vocational position.................................................................................147 6.3 Demand-specific aspects of qualifications-------------------------------------------149 6.3.1 Wage curves by professional groups................................................................................149 6.3.2 Wage curves by NACE.....................................................................................................151 6.3.3 Wage curves by firm size.................................................................................................152 6.4 Wage curves in unemployment categories...........................................................154 6.5 Simulation of changes of unemployment levels...................................................156 6.6 Conclusion..............................................................................................................158 7 Performance in public employment services: The Swiss model and an application with German data...........................................................................161 7.1 Motivation for the improvement of PES performance.......................................162 7.2 Labour market policy institutions in Switzerland and the reforms of the 1990s... .................................................................................................................................163 73 Implementation of the Swiss model__________________________________167 7.3.1 The benchmarking model and implementation scheme....................................................167 7.3.2 Experiences with the yardstick competition approach......................................................168 7.4 An analysis based on German data......................................................................171 7.4.1 Indicator calculation.........................................................................................................172 7.4.2 Results..............................................................................................................................174 7.5 Conclusion..............................................................................................................178 8 The impact of active labour market measures and performance of public employment services on wages..........................................................................181 8.1 ALMP and the wage curve: Motivation and hypotheses....................................182 8.2 The impact of labour market policies on the wage curve...................................183 8.2.1 The labour market in western Germany...........................................................................184 8.2.2 The case in eastern Germany............................................................................................187 8.2.3 Extended wage curves during the German reform process...............................................190 83 Performance of public employment services, wage curves, and performance curves .................................................................................................................................193 8.3.1 Performance-based wage curves I: Unemployment categories........................................194 8.3.2 Performance-based wage curves II: The impact of PES performance..............................199 8.4 Conclusion..............................................................................................................205 9 Concluding remarks...........................................................................................207 Appendix.....................................................................................................................215 Bibliography................................................................................................................226 List of tables Table 1: Overview of empirical and theoretical studies on the wage curve in European countries...........................................................................................................................44 Table 2: General principles for the design of performance measures and how they are mentioned in the discussed model...............................................................................61 Table 3: Definition of impact indicators.....................................................................................63 Table 4: German federal states......................................................................................................70 Table 5: Variables describing individual qualification patterns................................................79 Table 6: ISCO-88 major groups and skill levels.........................................................................81 Table 7: Reduced one-digit NACE classification (2004)..........................................................84 Table 8: ALMP measures in Germany.........................................................................................86 Table 9: Dispersion of unemployment and GDP per capita in EU member state regions (NUTS-3), 2003...............................................................................................................93 Table 10: Regional unemployment rates: Federal states, economic regions, and agency regions, 2004....................................................................................................................97 Table 11: Distribution of school degrees of dependent employed (2004).............................99 Table 12: School degrees by federal states (row percentage) and comparative macro figures, 2004...................................................................................................................100 Table 13: Vocational position by federal state (row percentage) and comparative macro figures.............................................................................................................................102 Table 14: School degree and vocational positions of dependently employed, row percentages.....................................................................................................................104 Table 15: Professional groups by federal states........................................................................106 8 Table 16: Share of firm size by federal state (row percentages).............................................109 Table 17: Branch distribution among dependent employees by federal state, 2004 (row percentages)..........................................................................................................Ill Table 18: Share of measure participation in ALMP with respect to the extended unemployment rate in Germany2, 2000-2004..........................................................114 Table 19: Participation in ALMP programmes in eastern and western Germany, 2004.... 115 Table 20: Model variables............................................................................................................123 Table 21: Different alternatives to specify the unemployment rate in the regression........128 Table 22: Wage curves for different unemployment specifications......................................130 Table 23: Wage curves for different regional aggregation levels............................................131 Table 24: Standard wage curves for men in dependent employment, western Germany, 1997-2004......................................................................................................................134 Table 25: Standard wage curve total labour force, 1997-2004..............................................136 Table 26: Lagged unemployment rates and first difference estimation................................138 Table 27: The importance of commuting ( 50km)................................................................138 Table 28: Estimates of regional wages with commuting.........................................................140 Table 29: Wage curves by school degree, western Germany..................................................146 Table 30: Wage curves by school degree, eastern Germany...................................................147 Table 31: Wage curves by vocational position, western Germany........................................148 Table 32: Wage curves by vocational position, eastern Germany.........................................149 Table 33: Wage curves for different occupational levels........................................................150 Table 34: Wage curves for different professional groups, men in western Germany (NACE categories)........................................................................................................152 Table 35: Wage curves for different firm sizes.........................................................................153 Table 36: Definition of regions by unemployment categories...............................................155 9 Table 37: Wage curves by unemployment category, by gender.............................................156 Table 38: Simulation of changes in unemployment figures, men in full-time dependent employment...................................................................................................................158 Table 39: Impact indicators from data sources of the Federal Republic of Germany.......173 Table 40: Descriptive statistics of the four indicators.............................................................174 Table 41: Ranking of top ten performers according to total indicator 3..............................177 Table 42: Impact of labour market policies on the wage-unemployment elasticity in western Germany..........................................................................................................185 Table 43: Impact of labour market policies in eastern Germany, 2000—2005.....................189 Table 44: Yearly extended wage curves, 2000-2004................................................................191 Table 45: Average unemployment categories and their distribution in the sample period 2000-2004......................................................................................................................195 Table 46: Extended wage curves by unemployment performance classes...........................196 Table 47: Impact of active measures in an extended unemployment framework...............198 Table 48: Elasticities for different indicators (2000)................................................................203 10 List of figures Figure 1: The wage-setting curve..................................................................................................35 Figure 2: The standard wage curve...............................................................................................42 Figure 3: Regions differing in shirking and effort......................................................................56 Figure 4: Unemployment and wages in Germany s federal states (average 2004).................95 Figure 5: Mean hourly wage by school degree (2004).............................................................101 Figure 6: Vocational position, 2004...........................................................................................103 Figure 7: Hourly wages by occupational classification (2004)................................................107 Figure 8: Firm size, 2004..............................................................................................................110 Figure 9: Hourly wages by branch category (NACE), 2004...................................................112 Figure 10: Relationship between ALMP and extended unemployment (2000-2004)........116 Figure 11: ALMP measures and extended unemployment.....................................................117 Figure 12: Active measures and wages.......................................................................................117 Figure 13: Active measures and regional wages.......................................................................118 Figure 14: Development of commuting from home to work, 1997-2004...........................139 Figure 15: Development of Swiss unemployment rate, 1970-2003......................................164 Figure 16: Main institutions of labour market policy..............................................................166 Figure 17: Distribution and density function of the four indicators.....................................175 Figure 18: Total indicators in different specifications.............................................................176 11
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Unemployment, wages, and the impact of active labour market policies in a regional perspective = Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief
Regionaler Arbeitsmarkt (DE-588)4076606-8 gnd
Arbeitslosigkeit (DE-588)4002730-2 gnd
Arbeitsmarktpolitik (DE-588)4002737-5 gnd
Lohnstruktur (DE-588)4131996-5 gnd
subject_GND (DE-588)4076606-8
(DE-588)4002730-2
(DE-588)4002737-5
(DE-588)4131996-5
(DE-588)4113937-9
title Unemployment, wages, and the impact of active labour market policies in a regional perspective = Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief
title_alt Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief
title_auth Unemployment, wages, and the impact of active labour market policies in a regional perspective = Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief
title_exact_search Unemployment, wages, and the impact of active labour market policies in a regional perspective = Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief
title_full Unemployment, wages, and the impact of active labour market policies in a regional perspective = Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief Christoph Alexander Hilbert
title_fullStr Unemployment, wages, and the impact of active labour market policies in a regional perspective = Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief Christoph Alexander Hilbert
title_full_unstemmed Unemployment, wages, and the impact of active labour market policies in a regional perspective = Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief Christoph Alexander Hilbert
title_short Unemployment, wages, and the impact of active labour market policies in a regional perspective
title_sort unemployment wages and the impact of active labour market policies in a regional perspective werkloosheid lonen en de gevolgen van reintegratiebeleid in een regionaal perspectief
title_sub = Werkloosheid, lonen en de gevolgen van reïntegratiebeleid in een regionaal perspectief
topic Regionaler Arbeitsmarkt (DE-588)4076606-8 gnd
Arbeitslosigkeit (DE-588)4002730-2 gnd
Arbeitsmarktpolitik (DE-588)4002737-5 gnd
Lohnstruktur (DE-588)4131996-5 gnd
topic_facet Regionaler Arbeitsmarkt
Arbeitslosigkeit
Arbeitsmarktpolitik
Lohnstruktur
Hochschulschrift
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