Have Labor Market Reforms at the Turn of the Millennium Changed the Job and Employment Durations of new Entrants?

Many European countries during the 1990s and early 2000s tried to raise labor market flexibility by relaxing their employment protection legislation. This paper investigates whether the reforms have influenced job and employment stability for labor market entrants in Germany and Italy. Duration models are estimated using comparable administrative data for the two countries. The results provide, to some extent, evidence of a decrease in job stability. However, this is not accompanied by a compensating increase in employment stability during the first 3 years after labor market entry.     

Joint decisions on household membership and human capital accumulation of youths. The role of expected earnings and local markets

This paper analyses the effects of expected earnings and local markets conditions on the behaviour of young adults with high school diplomas. Decisions to either remain in the parental home or form a new household are modelled jointly with those of either gaining work experience or investing in a university education. Expected lifetime earnings are found to play a crucial role in determining the choice of studying and residing with parents. Poor labour market opportunities discourage young people from working and induce them to study. The cost of housing greatly influences the choice of working and leaving the parental home. Received: 23 March 2001/Accepted: 26 November 2001 All correspondence to Gianna Claudia Giannelli. Helpful comments by two anonymous referees are gratefully acknowledged. Responsible editor: John F. Ermisch.     

Women's transitions in the labour market: a competing risks analysis on German panel data

This paper analyses the transitions between the three states of non-employment, part-time and full-time work of a sample of married women living in West Germany. The questions addressed concern the dynamics of women's labour market transitions and the association of the probability of transition with household and individual characteristics. A non-parametric duration analysis shows that women have a similar attachment to full-time and part-time work in terms of survival, and that survival in non-employment is shorter than in the other two states. Estimates of a parametric discrete-time competing risks duration model show that wives of retired husbands go into full-time work, children under 3 years have a disincentive effect on part-time work and that part-time work is a state that German women prefer to stay in and not a first step to full-time employment, whereas foreign women living in West Germany prefer full-time jobs.I thank Rebecca Blank, John F. Ermisch, Siv Gustafsson, John Micklewright, Pravin Trivedi, Jane Waldfogel and two anonymous referees for helpful discussions and comments, and Hans-Peter Blossfeld for providing access to these data through his research project at the European University Institute of Florence. Responsible editors: Siv S. Gustafsson, John F. Ermisch     

Is there such a thing as a family constitution? A test based on credit rationing

The paper tests the hypothesis that private transfers can be explained by the existence of self-enforcing family constitutions prescribing the minimum level at which a person in middle life should support her young children and elderly parents. The test is based on the effect of a binding credit ration on the probability of making a money transfer, which can be positive only in the presence of family constitutions. Allowing for the possible endogeneity of the credit ration, we find that rationing has a positive effect on the probability of giving money if the potential giver is under the age of retirement, but no significant effect if the person is already retired. This appears to reject the hypothesis that transfer behavior is the outcome of unfettered individual optimization on the part of either altruistic or exchange motivated agents, but not the one that individuals optimize subject to a self-enforcing family constitution. The policy implications are briefly discussed.

Labour Costs and Employment in the Service Economy

Abstract. In this paper we analyse the direct relationship between the cost of labour and employment in diverse service industries. In contrast to most existing studies, we assume that the tertiary sector is highly differentiated h terms of reactions to both supply and demand factors. The study suggests that we must reasses the relevance of demand factors, but it also confirms that the real cost of labour is a crucial determinant of certain kinds of service employment. Country comparisons have made US sensitive to the fact that the relationship between employment and the cost of labour is far from being globally similar. Each country exhibits behaviour in line with the peculiarities of its labour market.