An Overview on the Linked Employer-Employee Data of the Institute for Employment Research (IAB)

Heining, Jörg; Klosterhuber, Wolfram; Seth, Stefan

doi:10.3790/schm.134.1.141

“…A large body of economic research on rent sharing suggests that they do (Card et al, 2016 for a review). To validate this step in the causal process that I seek to trace, and to obtain an empirical estimate of the strength of this relationship, I exploit the IAB Establishment Panel's potential to be extended to a linked-employer-employee panel data set (Heining et al, 2014). The availability of a longitudinal survey at the establishment level in combination with longitudinal administrative data on all employees covered by social insurance at these very same establishments permits the implementation of the following distributed lag (three-way) fixed-effects panel regression model to address this question:…”

Section: Modeling Strategy and Datamentioning

confidence: 99%

Mercantilist dualization: the introduction of the euro, redistribution of industry rents, and wage inequality in Germany, 1993–2008

Ochsenfeld

¹

2017

Socio-Economic Review

11

2

0

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The current debate over distributional implications of the crisis-ridden Economic and Monetary Union (EMU) is heavily biased towards international accounts. Little attention is paid to who wins and who loses out intranationally. I argue that in Germany the EMU has reinforced dualization, the insider-outsider cleavage in the country's welfare state and production model. To scrutinize this argument, I analyze longitudinal linked employeremployee data (N>9.6 mio) and pursue a mechanistic three-step identification strategy: First, I illustrate how the introduction of the Euro distorted real interest and exchange rates within the Eurozone. Second, I demonstrate how these imbalances redistributed rents from the domestic sector, in particular from construction, to the core manufacturing industry. Third, I show how this shift in industry rents reverberated to the wage distribution and increased inequality. The study contributes to resolve the puzzle why wage inequality in Germany increased through a fanning out of the wage distribution whereas countries similarly exposed to technological change and globalization grew unequal through a polarization of their wage distribution.

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“…Information on employees stems from the notification procedure that obliges German employers to report exact daily wages (including bonus payments) and a set of person characteristics to social security institutions (Heining et al, 2014). I restrict the sample to core workers: full-time social insurance covered non-apprentice employees of age 18 to 65 with a gross effective daily wage of at least 20€ 4 who are with their current employer for at least two years.…”

Section: 2mentioning

confidence: 99%

The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments

Ochsenfeld

¹

2018

Preprint

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Scholars argue that the dual path to labor market flexibility protects the privileges of core workers at the expense of employees relegated to a peripheral employment sector. Yet whether core workers indeed benefit from workforce segmentation remains disputed. To scrutinize this question, I study how the wages of core workers with less than college education respond when their employer shifts employment out to subcontractors, using linked employer-employee panel data from Germany. Empirically, I find the effect of subcontracting on average to be either positive or neutral, but not negative. The presence and strength of the positive effect depends, first, on whether the type of subcontracting affords core workers with codetermination rights, second, on whether core workers are represented by a works council to exercise these rights, and, third, on whether these rights are exercised in a context that augments the bargaining position of core workers by rendering conflictual labor relations costly to the employer.2

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“…These models are fit to a linked employer-employee panel dataset (LIAB) that results from matching data from the IAB Establishment Panel, an employer panel study, with longitudinal administrative data on the full population of the surveyed establishments' employees covered by social security (Heining et al, 2014). In the following, I briefly describe how I operationalize the treatment ( , 4.1), control ( , 4.1), and outcome variables ( , 4.2).…”

Section: Datamentioning

confidence: 99%

“…In all analyses, I use weights to account for the stratified sampling design and weight establishments by their size (number of employees). A replication package documents these and all other coding decisions in full detail and is publicly and permanently available at the Harvard Dataverse (Ochsenfeld, 2018 Information on employees stems from the notification procedure that obliges German employers to report exact daily wages (including bonus payments) and a set of person characteristics to social security institutions (Heining et al, 2014). I restrict the sample to core workers: full-time social insurance covered non-apprentice employees of age 18 to 65 with a gross effective daily wage of at least 20€ 4 who are with their current employer for at least two years.…”

Section: Establishment-level Datamentioning

confidence: 99%

The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments

Ochsenfeld

¹

2018

European Sociological Review

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Scholars argue that the dual path to labor market flexibility protects the privileges of core workers at the expense of employees relegated to a peripheral employment sector. Yet whether core workers indeed benefit from workforce segmentation remains disputed. To scrutinize this question, I study how the wages of core workers with less than college education respond when their employer shifts employment out to subcontractors, using linked employer-employee panel data from Germany. Empirically, I find the effect of subcontracting on average to be either positive or neutral, but not negative. The presence and strength of the positive effect depends, first, on whether the type of subcontracting affords core workers with codetermination rights, second, on whether core workers are represented by a works council to exercise these rights, and, third, on whether these rights are exercised in a context that augments the bargaining position of core workers by rendering conflictual labor relations costly to the employer.

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An Overview on the Linked Employer-Employee Data of the Institute for Employment Research (IAB)

Cited by 20 publications

References 3 publications

Mercantilist dualization: the introduction of the euro, redistribution of industry rents, and wage inequality in Germany, 1993–2008

Mercantilist dualization: the introduction of the euro, redistribution of industry rents, and wage inequality in Germany, 1993–2008

The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments

The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments

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