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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