Wage setting over the business cycle and the effect of employment protection on human capital formation [Elektronische Ressource] / vorgelegt von Marcus Sonntag
135 pages
English

Wage setting over the business cycle and the effect of employment protection on human capital formation [Elektronische Ressource] / vorgelegt von Marcus Sonntag

Le téléchargement nécessite un accès à la bibliothèque YouScribe
Tout savoir sur nos offres
135 pages
English
Le téléchargement nécessite un accès à la bibliothèque YouScribe
Tout savoir sur nos offres

Description

Wage Setting over the Business Cycle and the Effect ofEmployment Protection on Human Capital FormationInaugural-Dissertationzur Erlangung des Grades eines Doktorsder Wirtschafts- und Gesellschaftswissenschaftendurch dieRechts- und Staatswissenschaftliche Fakultätder Rheinischen Friedrich-Wilhelms-UniversitätBonnvorgelegt vonMarcus Sonntagaus Frankfurt am MainBonn 2009Dekan: Prof. Dr. Christian HillgruberErstreferent: Prof. Monika Merz, PhDZweitreferent: Prof. Dr. Christian BayerTag der mündlichen Prüfung: 15. Juni 2009Diese Dissertation ist auf dem Hochschulschriftenserver der ULB Bonn(http://hss.ulb.uni-bonn.de/diss_online) elektronisch publiziert.AcknowledgmentsI am grateful to my advisor Monika Merz for her support throughout this dissertation.She has been a very engaged and competent teacher and conversation partner and hasgiven me advise on many issues. I am also very grateful to my coauthors Christian Haefkeand Thijs van Rens. They have accompanied me in my first steps doing research, andhave given me a lot of valuable hints. Discussing research topics with them was verymotivating and inspiring. I would like to express my acknowledgements to my teachersat the University of Bonn and at the University Pompeu Fabra in Barcelona, especiallyMichael Reiter and Albert Marcet.I am grateful to Christian Bayer and to Jörg Breitung for taking part in my thesiscommittee.

Informations

Publié par
Publié le 01 janvier 2009
Nombre de lectures 25
Langue English
Poids de l'ouvrage 1 Mo

Extrait

Wage Setting over the Business Cycle and the Effect of
Employment Protection on Human Capital Formation
Inaugural-Dissertation
zur Erlangung des Grades eines Doktors
der Wirtschafts- und Gesellschaftswissenschaften
durch die
Rechts- und Staatswissenschaftliche Fakultät
der Rheinischen Friedrich-Wilhelms-Universität
Bonn
vorgelegt von
Marcus Sonntag
aus Frankfurt am Main
Bonn 2009Dekan: Prof. Dr. Christian Hillgruber
Erstreferent: Prof. Monika Merz, PhD
Zweitreferent: Prof. Dr. Christian Bayer
Tag der mündlichen Prüfung: 15. Juni 2009
Diese Dissertation ist auf dem Hochschulschriftenserver der ULB Bonn
(http://hss.ulb.uni-bonn.de/diss_online) elektronisch publiziert.Acknowledgments
I am grateful to my advisor Monika Merz for her support throughout this dissertation.
She has been a very engaged and competent teacher and conversation partner and has
given me advise on many issues. I am also very grateful to my coauthors Christian Haefke
and Thijs van Rens. They have accompanied me in my first steps doing research, and
have given me a lot of valuable hints. Discussing research topics with them was very
motivating and inspiring. I would like to express my acknowledgements to my teachers
at the University of Bonn and at the University Pompeu Fabra in Barcelona, especially
Michael Reiter and Albert Marcet.
I am grateful to Christian Bayer and to Jörg Breitung for taking part in my thesis
committee.
I want to thank my fellow students with whom I could discuss my research, Matthias
Parey, Felix Hammermann, Tim Mennel and Robert Zymek. Thanks address also Harald
Uhlig for hosting me as a researcher at Humboldt-University during some months.
I am also grateful to the Cusanuswerk for financial and non-material support, also to
the BGSE and the DAAD for financial assistance.
I am indebted to my friends who have supported me during my time in Bonn, espe-
ciallyPaulNoll,AnnaSchriefl,DanielSchuler,SvenSchümmer,JörnLüdemann,Matthias
Wibral, Kerstin Neumann and Stefan Mihalache. I am grateful to my parents who have
supported my in many ways during the time of my studies and lent helping hands, espe-
cially in the many moves I had to make.Contents
List of Figures iii
List of Tables v
Introduction 1
Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Chapter Summaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1 Wage Rigidity and Job Creation 9
1.1 Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.1.1 Individual-level data from the CPS . . . . . . . . . . . . . . . . . . 14
1.1.2 Construction of the wage index . . . . . . . . . . . . . . . . . . . . 16
1.1.3 Volatility of wages . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.2 Response of wages to productivity . . . . . . . . . . . . . . . . . . . . . . . 22
1.2.1 Estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1.2.2 Newly hired workers out of non-employment . . . . . . . . . . . . . 24
1.2.3 Job-to-job changers . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
1.2.4 Great moderation and pre-1984 wage rigidity . . . . . . . . . . . . . 28
1.3 Implications for job creation and unemployment . . . . . . . . . . . . . . . 29
1.3.1 Job creation in a frictional labor market . . . . . . . . . . . . . . . 30
1.3.2 Flexible wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
1.3.3 Rigid wages in ongoing jobs . . . . . . . . . . . . . . . . . . . . . . 32
1.3.4 The unemployment volatility puzzle . . . . . . . . . . . . . . . . . . 35
1.4 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Appendix1.A Description of the data . . . . . . . . . . . . . . . . . . . . . . 38
1.A.1 Wages from the CPS outgoing rotation groups . . . . . . . . . . . . 38
1.A.2 Identifying newly hired workers . . . . . . . . . . . . . . . . . . . . 40
Appendix1.B Correcting business cycle statistics for sampling error . . . . . . 40
Appendix1.C Model details from Section 1.3 . . . . . . . . . . . . . . . . . . . 42
1.C.1 Derivation of the job creation equation . . . . . . . . . . . . . . . . 42
iii
1.C.2 Derivation of the wage equation . . . . . . . . . . . . . . . . . . . . 42
1.C.3 Numerical solution and simulations . . . . . . . . . . . . . . . . . . 43
Appendix1.D Additional tables . . . . . . . . . . . . . . . . . . . . . . . . . . 45
2 Employment Protection over the Workers’ Life Cycles 51
2.1 Related literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
2.2 The model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
2.2.1 Firms and workers . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
2.2.2 Skill depreciation, skill investment, and layoffs . . . . . . . . . . . . 58
2.2.3 Time schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
2.2.4 Value functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
2.2.5 Aggregation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
2.2.6 Wage setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
2.2.7 The human capital production function and the cost of training . . 65
2.2.8 Functional forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
2.2.9 Forces at work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
2.3 Simulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
2.3.1 Calibration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
2.4 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
2.5 Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
N min N minAppendix2.A Proof that minfJ ;J g>¡¿ +S)w >w . . . . . . . 83
Appendix2.B Solving the model . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Appendix2.C Additional figures . . . . . . . . . . . . . . . . . . . . . . . . . 86
3 Employment Protection and Training Incidence 93
3.1 Professional training in Germany . . . . . . . . . . . . . . . . . . . . . . . 94
3.2 Regression analysis difference-in-differences . . . . . . . . . . . . . . . . . . 103
3.2.1 Data from the Qualification-and-Career Survey . . . . . . . . . . . 103
3.2.2 Econometric methodology . . . . . . . . . . . . . . . . . . . . . . . 106
3.2.3 Regression results . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
3.3 Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Appendix3.A Additional tables . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Concluding Remarks 113
Bibliography 115List of Figures
1.1 Fraction of new hires among employed workers . . . . . . . . . . . . . . . . 15
1.2 Characteristics of all and newly hired workers over time . . . . . . . . . . . 18
1.3 Wage cyclicality for different worker groups . . . . . . . . . . . . . . . . . . 20
2.1 Calibration: nonemployment rate . . . . . . . . . . . . . . . . . . . . . . . 73
2.2 average wage . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
2.3 Average job value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
2.4 Job finding probability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
2.5 Average layoffy . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
2.6 Human capital investments . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
2.7 Average human capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
2.8 Average wage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
2.9 Nonemployment rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
2.10 Evolution of the wage distribution . . . . . . . . . . . . . . . . . . . . . . . 86
2.11 Policy functions: wage setting . . . . . . . . . . . . . . . . . . . . . . . . . 88
2.12 Policy investment . . . . . . . . . . . . . . . . . . . . . . . . . . 90
3.1 Participation in training measures . . . . . . . . . . . . . . . . . . . . . . . 95
3.2 Composition by age and gender . . . . . . . . . . . . . . . . . . . . . . . . 96
3.3 Age and gender, only full-time workers . . . . . . . . . . . . . . . . . . . . 97
3.4 Composition by gender and education . . . . . . . . . . . . . . . . . . . . . 98
3.5 Motivation for professional training . . . . . . . . . . . . . . . . . . . . . . 99
3.6 Financial support from employer . . . . . . . . . . . . . . . . . . . . . . . 100
3.7 Who pays for on-the-job training . . . . . . . . . . . . . . . . . . . . . . . 101
3.8 Training takes place during working time. . . . . . . . . . . . . . . . . . . 102
iiiiv

  • Univers Univers
  • Ebooks Ebooks
  • Livres audio Livres audio
  • Presse Presse
  • Podcasts Podcasts
  • BD BD
  • Documents Documents