Essays on long-term labor market developments and retirement in Germany ; Aufsätze über langfristige Entwicklungen am Arbeitsmarkt und Rente in Deutschland
The welfare state, its institutions and the labor market are subject to constant change in Germany. At all times, their current state is an outcome of an ongoing process of adjustment. First elements of insurance against labor market risks were implemented as early as 1260 by miners' associations (Bingener et al, 2009). The evolution of welfare state and according legislation until today was heavily influenced by regime changes, wars, the zeitgeist, as well as social and political necessities. This cumulative dissertation comprises of four chapters and focusses on the development of employees' working careers under Germany's current regime, which emerged following World War 2. Since then, working careers are strongly influenced by major political changes like the German reunification but also by smaller changes in regulatory framework and socioeconomic environment. The first two chapters deal with labor market earnings, which Barr (2012) lists as the most important source of welfare aside from governmental activities. Both chapters show how working lives and earnings trajectories of current West German employees differ from those of previous generations. The main contribution is an intragenerational comparison of cohorts' earnings inequality and volatility to scrutinize long-term differences and the evolution of labor market outcomes. An example is the increase in unemployment over the time frame considered, which in turn affects distinct cohorts at different ages and, therefore, in different ways. The analyses reflect challenges that German workers face through labor market adjustments caused by e.g. deregulation, deunionization, globalization, and skill biased technological change. The underlying data enables the comparison of complete working life cycles of older cohorts to early and middle stages of younger cohorts' careers. By taking this cohort perspective both studies show how different generations fared at identical ages, uncovering long-term trends and impacts of various labor market developments. ...