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Journal for Labour Market Research

Table 2 Wage Models for West Germany

From: The evolution of job stability and wages after the implementation of the Hartz reformsDie Entwicklung von Beschäftigungsstabilität und Löhnen seit Einführung der Hartz-Reformen

  Censored Regression Model
Log Real Wages
Men Women
Coefficient za Coefficient za
Year of entry (ref: 1998–2002)
2003–2005 −0.023 −5.7 −0.030 −5.5
2006–2009 −0.089 −29.8 −0.088 −20.1
Skill level (ref: vocational training with at most an intermediate degree)
Missing information on educational level −0.205 −11.1 −0.174 −11.3
No vocational training with at most an intermediate degree −0.220 −38.4 −0.217 −23.3
High school/equivalent; with or without vocational training 0.096 17.7 0.148 22.0
University/technical/professional college degree 0.495 52.6 0.413 44.2
Potential experience b 3.582 27.1 0.044 0.3
Potential experience squared b −0.063 −23.2 0.006 1.8
Preceding state (ref: job-to-job)
First spell 0.024 5.7 −0.014 −2.4
Unemployed −0.268 −48.4 −0.228 −37.6
Job followed by gap −0.179 −34.4 −0.190 −31.9
Unemployment followed by gap −0.179 −29.9 −0.198 −28.3
Local labour demand (district level)
Unemployment rate −0.002 −2.1 0.003 2.2
GDP growth 0.035 0.8 0.067 0.8
Federal state (ref: North Rhine-Westphalia)
Schleswig Holstein, Hamburg −0.023 −1.4 0.021 0.7
Lower Saxony, Bremen −0.048 −6.7 −0.063 −3.2
Hesse 0.011 0.6 0.045 1.6
Rhineland Palatinate, Saarland −0.049 −4.4 −0.048 −2.8
Baden-Württemberg 0.017 1.6 0.017 1.0
Bavaria 0.008 0.5 0.038 1.1
Firm size (ref: < 20 employees)
20–49 0.128 34.1 0.176 31.3
50–249 0.181 37.1 0.268 49.2
250–999 0.270 45.8 0.395 50.1
1000 and more 0.363 37.2 0.511 31.4
Industry (ref: business services)
Agriculture, mining −0.221 −13.1 −0.174 −7.8
Energy, traffic and information −0.123 −8.8 −0.010 −0.4
Manufacturing 0.007 0.8 −0.035 −2.8
Construction 0.005 0.5 −0.173 −8.0
Trade and retail −0.035 −4.3 −0.051 −3.7
Personal and domestic services −0.359 −32.0 −0.247 −21.3
Social and public services −0.164 −13.3 −0.006 −0.3
Temporary work agency −0.543 −43.2 −0.405 −31.5
Foreigner −0.153 −29.4 −0.080 −9.4
Constant 4.017 270.0 3.941 209.9
Log (sigma) −0.863 −65.6 −0.699 0.7
Wald chi 2 (33) 39.685 – 38.019 –
Log pseudolikelihood −105.077 – −72.515 –
Number of obs. 178,065 – 99,012 –
Censored obs. 17,278 – 2827 –
  1. aThe standard errors of the coefficients are adjusted for 325 regional clusters
  2. bThe coefficients of the experience variables and of GDP growth are multiplied by 100 in order to obtain legible values
  3. Source: IEB, Federal Statistical Office, own calculations
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