How weather-proof is the construction sector? : empirical evidence from Germany

Arntz, Melanie ; Wilke, Ralf A.

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URN: urn:nbn:de:bsz:180-madoc-21826
Document Type: Working paper
Year of publication: 2008
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J68 J48 J38 ,
Subject headings (SWD): Deutschland , Ausgleichszahlung , Lohn , Flexible Arbeitszeit , Wirkungsanalyse , Bauwirtschaft , Arbeitsplatzsicherung , Saisonschwankung
Keywords (English): panel data , temporary layoffs , employment stability
Abstract: With the purpose to reduce winter unemployment and to promote all-season employment in the constructions sector, Germany maintains an extensive bad weather allowance system. Since the mid 1990s, these regulations have been subject to several reforms that resemble the range of approaches for employment promotion which can be found in other European countries. We analyse the effect of these reforms on individual unemployment risks using large individual administrative data merged with information about local weather conditions and the business cycle. We find a weaker direct link between seasonal layoffs and actual weather than broadly assumed, since most of the layoffs take place at fixed dates. The reforms under consideration have economically plausible effects; Regulations that limit an employer's financial burden reduce transitions to unemployment and render it less weather-dependent.
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