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Table 5 Overview of the main results of several models

From: Employment adjustment in German firmsBetriebliche Beschäftigungsanpassung in Deutschland

Model

Data

Specification of the adjustment costs

Adjustment coefficient (α 1)

Wage elasticity (short-/long-term)

Turnover elasticity (short-/long-term)a

Table 2

Western Germany; 1996–2010

convex and symmetric

0.675

−0.09/−0.27

0.03/0.10

Eastern Germany; 1996–2010

convex and symmetric

0.660

−0.08/−0.23

0.02/0.07

Table 3

Western Germany; 1996–2010

convex and asymmetric

0.653b

−0.05/−0.15b

(0.04/0.12)b

0.728c

−0.05/-0.20c

(0.01/0.04)c

Eastern Germany; 1996–2010

convex and asymmetric

0.674b

−0.01/−0.04b

(0.03/0.11)b

0.754c

−0.06/−0.34c

(0.01/0.03)c

Table 4

Western Germany; 1996–2010

fix, convex and asymmetric

0.725b

−0.05/−0.19b

(0.02/0.06)b

0.787c

−0.09/−0.43c

(−0.01/−0.02)c

Eastern Germany; 1996–2010

fix, convex and asymmetric

0.675b

−0.03/–0.12b

(0.02/0.09)b

0.749c

−0.10/−0.76c

(0.02/0.14)c

  1. aStatistically insignificant elasticities are in parenthesis
  2. bPlants with an employment increase
  3. cPlants with an employment decrease
  4. Source: IAB Establishment Panel, waves 1996–2010; own calculations