Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20918
Authors: 
Schmidt, Christoph M.
Year of Publication: 
1999
Series/Report no.: 
IZA Discussion paper series 84
Abstract: 
It is often argued that the labor market outcomes of several ?problem groups? of German workers suffer disproportionately in an economic downturn. These groups are women, the unskilled, and young and old workers, respectively. Using monthly individual-level data for West Germany for the period 1983 to 1994, this paper explores both the demographic heterogeneity of German unemployment in the long term, and the cyclical sensitivity of the unemployment experience across demographic groups. The analysis moves beyond that of unemployment rates to a detailed investigation of transition rates from employment to unemployment and vice versa. While long-term differences across demographic groups are dominating the structure of both job loss and re-employment, estimation of a nonlinear regression model reveals additional aspects of cyclical sensitivity. In particular, young workers experience drastically more pronounced swings in their labor market performance than the average worker, whereas old workers seem basically isolated from the economic cycle. By contrast, in terms of its cyclical sensitivity, the labor market performance of women and of unskilled workers is not dramatically different from that of the average worker.
Subjects: 
Skills
transitions
unemployment duration
labor market states
JEL: 
J63
J21
J64
Document Type: 
Working Paper

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