Discussion Paper
No. 2009-34 | July 15, 2009
Thomas Büttner, Peter Jacobebbinghaus and Johannes Ludsteck
Occupational Upgrading and the Business Cycle in West Germany

Abstract

The occupational skill structure depends on the business cycle if employers respond to shortages of applicants during upturns by lowering their hiring standards. The notion and relevance of hiring standards adjustment was advanced by Reder and investigated formally in a search-theoretic framework by Mortensen. Devereux implements empirical tests for these theories and finds affirmative evidence for the U.S. labour market. We replicate his analysis using German employment register data. Regarding the occupational skill composition we obtain somewhat lower but qualitatively similar responses to the business cycle despite of well known institutional differences between the U.S. and German labour market. The responsiveness of occupational composition wages to the business cycle is considerably lower in Germany.Data access (Readme.pdf, 12 KB)

JEL Classification:

J62, J41, J31, C24

Links

Cite As

[Please cite the corresponding journal article] Thomas Büttner, Peter Jacobebbinghaus, and Johannes Ludsteck (2009). Occupational Upgrading and the Business Cycle in West Germany. Economics Discussion Papers, No 2009-34, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2009-34


Comments and Questions



Anonymous - congratulations
July 16, 2009 - 09:18
I think this is a nice paper that tests innovative hypotheses on the labour market and may explain some of the actual reasons behind employment (and unemployment) according to skill and wage.

Ekkehart Schlicht - Possibly controversial implications
August 03, 2009 - 08:54
See attached file

Anonymous - Referee Report
August 26, 2009 - 09:51
See attached file

Thomas Büttner, Peter Jacobebbinghaus and Johannes Ludsteck - Reply to Referee Report
September 01, 2009 - 14:03
See attached file

Anonymous - Referee Report
August 26, 2009 - 13:21
See attached file

Thomas Büttner, Peter Jacobebbinghaus and Johannes Ludsteck - Reply to Referee Report
September 01, 2009 - 14:06
See sttached file

Anonymous - Comment
September 08, 2009 - 09:27
See attached file

Thomas Büttner, Peter Jacobebbinghaus and Johannes Ludsteck - Reply to Invited Reader Comment
September 15, 2009 - 13:08
See attached file.

Anonymous - Editors Report
September 15, 2009 - 14:40
The referees and myself have read the paper. As you can see from the reports, they are very critical and see many issues of the paper which are either difficult to follow or misleading. I agree with the issues the referees raised and would give you the opportunity to prepare a major (!) revision of the paper covering all issues the referees are bringing up. I noticed that the issue about having an aggregate or regional unemployment rate is important for the interpretation of the whole analysis and would like you to discuss this issue with some detail in the paper as well.