Dynamic labour demand and asymmetrical adjustment behaviour in the Federal Republic of Germany : a study using data from the IAB establishment panel

Abstract

"This report contains estimates of the dynamic labour demand in the Federal Republic of Germany which were carried out using data from the IAB establishment panel for the old Länder (former West Germany) from the years 1993 to 1996. First of all a theoretical model is developed which also permits the possibilities of asymmetrical costs in the adjustment of labour demand. In addition it is possible, due to the panel structure of the data record, to obtain information on enterprise-specific heterogeneities and serial correlation between the individual variables. With estimates of this model using the general method of moments, indications come to light of different cost structures for recruitments and dismissals. According to this, recruitments cause less expense than the same amount of dismissals. The period needed for the adjustment of labour demand corresponds to the results obtained from other studies, whereas the wage and demand elasticities determined are lower than in other studies." (Author's abstract, IAB-Doku) ((en))

Cite article

Kölling, A. (1998): Dynamische Arbeitsnachfrage und asymmetrisches Anpassungsverhalten in der Bundesrepublik Deutschland. Eine Untersuchung mit Daten aus dem IAB-Betriebspanel. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 31, No. 4, p. 637-647.