German Labour Markets Tendencies

Furthermore, these factors that play a role in this adjustment of occupational aspirations may vary depending on the regional differences within a country. Structurally, regional labour markets differ on the level of integration of employment and housework given the economic conditions of the region (Sackmann & H?ussermann, 1994). These conditions not only add to the explanation of inequalities in the probabilities of entering into a particular occupation through education and training. Also, these conditions interact with other individual-level factors, such as the influence of 'significant others'.

The perception of the labour-market conditions by the individual's peers, family and friends may influence the expectations the individual has. Consequently, adolescents' preferences towards certain occupation may change (We?ling, Hartung, & Hillmert, 2015).

As previously mentioned, it is expected that these influences on (STEM) career choices are more likely to have an effect on gender-specific occupational aspirations at the late stages of high school when students perceive this 'reality' (Heckhausen & Tomasik, 2002; Cech et al., 2011).

Regional labour-market conditions

In modern affluent economies, gender segregation remains high and constant (Jacob, Kleinert, & K?hhirt, 2009; Charles, 2017).

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This occurs even though women have been obtaining more education (at all levels) and their typical2 occupational sectors have been expanding, especially into the tertiary sector (Jacob, Kleinert, & K?hhirt, 2009). An example of gender segregation can be found in recent data. According to data collected by the OECD, approximately 40% of men employed in Germany work in the Industry sector, and roughly 58% work in Services. However, the difference is more significant for women.

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While 85% of the women employed work in the Services sector, approximately 14% of the German women employed work in the Industry sector. These findings can be observed in the Figures below. Like previous studies, the data suggests that many occupations in the industry sector remain mainly male-dominated as there is low women participation.

Female-dominated.

Mar Lobato Gomez (2019) -MSc Economics (Maastricht University), Master Thesis

Figure 1. Percentage of employment in Germany in the Industry Sector | Source: OECD.Stat - Employment by sector

Figure 2. Rate of employment in Germany in the Services sector | Source: OECD.Stat - Employment by sector

Furthermore, the tendency to enter male-typical (or male-dominated) occupations in the industry sector has not significantly changed - despite the shrink of this sector due to the expansion of the service sector (Jacob, Kleinert, & K?hhirt, 2009). This alters the gender-perception of prospective school-leavers on occupational opportunities and limitations.

Nonetheless, the student's perceptions may also vary according to the regional labour conditions. Previous studies in Germany have shown a negative relationship between regional unemployment and the likelihood of being accepted in a vocational training programme (Kleinert & Jacob, 2013). For instance, We?ling et al. found that regional unemployment on districts and neighbouring districts hurt the likelihood of entering the VET programme (We?ling, Hartung, &

  • 2008 2009 2010 2011 2012 2013 2014 2015
  • Men 41.2 40.8 40.3 40.3 40.2 39.7 40.1 39.8
  • Women 15.0 14.6 14.3 14.3 14.2 14.1 14.2 13.9
  • 10.0
  • 15.0
  • 20.0
  • 25.0
  • 30.0
  • 35.0
  • 40.0
  • 45.0

Share of employed working in Industry (%)

  • 2008 2009 2010 2011 2012 2013 2014 2015
  • Men 56.6 57.1 57.6 57.6 57.8 58.5 58.1 58.5
  • Women 83.6 84.2 84.5 84.6 84.7 84.9 84.8 85.2
  • 55.0
  • 60.0
  • 65.0
  • 70.0
  • 75.0
  • 80.0
  • 85.0
  • 90.0

Shared of employed working in Services (%)

Mar Lobato Gomez (2019) -MSc Economics (Maastricht University), Master Thesis Hillmert, 2015). The regional unemployment rates impact the transition from school to work - influencing at the same time students' occupational aspirations. This is especially the case when students need to access vocational training. This is because VET programmes are more sensitive to these market conditions as firms need to hire the prospective school-leavers (Kleinert & Jacob, 2013; We?ling, Hartung, & Hillmert, 2015; Glauser and Becker, 2016).

The opportunities and limitations in the regional labour market are determined under the principle of supply and demand. This principle is shaped by economic conditions in the short-term (such as unemployment in an economic crisis), in the long-term trend (like the effects of structural wage changes), and by regional structural differences (like the participation rate or unemployment) (Hillmert, Hartung, & We?ling, 2017).

Adolescents adapt their occupational aspirations according to the opportunities (like the quantity and types of apprenticeships) and limitations (such as the competition with other school-leavers or regional unemployment) perceived by them (Malin & Jacob, 2018). In other words, these determinants will affect the probability of obtaining a particular occupation by the prospective school- leaver (Gottfredson, 1981).

To sum up, the relationship between regional conditions and occupational aspirations have been found in previous research. Moreover, it has been shown that gender-specific stereotypes on typical-gender occupations may have an impact on the occupational aspirations of adolescents. If these two facts are combined, it leads to the central topic of this study: the impact of regional characteristics on gender-specific career choices in the STEM industry.

Hypothesis 1:

The higher likelihood of female students to choose a career path in STEM is associated with favourable regional labour-market conditions in the STEM industry for female workers.

That is to say, if female employment in the STEM industry in a region is substantial, it is expected that prospective school-leavers will use this reference to choose an atypical gender career path, especially in the STEM industry. The more gender-equalise sectors are, the lesser is the influence of stereotypes or negative work values associated with gender.

On the other hand, if there are unfavourable market conditions such as large female unemployment, this will be perceived as a limitation for prospective female school-leavers. This limitation is expected to reduce the likelihood that female students will choose a career path in the STEM industry.

Mar Lobato Gomez (2019) -MSc Economics (Maastricht University), Master Thesis

Parents perceptions on the regional labour market conditions

Gender segregation may also be affected by the role of 'significant others', including the parents (Chesters & Smith, 2015). Parents may exert influence on the work values of their children by transmitting their norms and values (Eccles (1987); Busch-Heizmann (2015)). Moreover, according to the socialisation theory, parents (and other individuals such as classmates) exert different demands for boys and girls (Blakemore & Hill, 2008). Subsequently, parents may have a role in the occupational aspirations of adolescents, including atypical-gender occupational aspirations (Busch-Heizmann, 2015). This influence may be more visible the closer adolescents are to entering the labour market (Heckhausen & Tomasik, 2002).

Additionally, it has been found that adolescents tend to have similar gender-atypical occupational aspirations as the same-gender parent. This is also the case in Germany (Shu & Marini, 1998; Helbig & Leuze, 2012; Busch, 2013). Therefore, if the mother's occupation is in the STEM industry, it should be expected a higher likelihood of a female student choosing a career in STEM.

Hypothesis 2a:

The higher likelihood of female students to choose a career path in STEM is associated with having one of the parents working in the STEM industry.

Hypothesis 2b:

This association is stronger if the mother of the female student works in the STEM industry.

The fact that the composition of the economy may alter the parental transmission of values leads to parental concern about (regional) labour market conditions. If there are unfavourable labour market conditions in their region, it is assumed that the parent will signal this to his/her children through their advice on activities and skills to obtain (Eccles, 2015). As assumed, parents want to provide the best to their children (Jodl et al., 2001). Therefore, if the parents work in the STEM industry, they will have a broader knowledge of the market conditions. Thus, it is necessary to control for both factors.

Hypothesis 3:

Associations between regional labour-market conditions and the likelihood of female students to choose a STEM occupation is stronger if parents work in the STEM industry.

For instance, if there is low (long-term) female employment in the STEM industry of a region, parents would be more inclined to advise their daughter to choose another career path.

Having studied the explanatory factors, the next step is to consider the focus of this paper. To study these factors in more detail, the analysis will be based on Germany and the German adolescents that are close to the transit to the labour market.

Mar Lobato Gomez (2019) -MSc Economics (Maastricht University), Master Thesis

Germany and its hierarchy educational tracking structure

Nationwide, German Schools follow a 12-grade system, although some specifics may vary depending on the region. One of the characteristics of this system is its hierarchical secondary school tracking. According to their performance in primary school, students are distributed to lower-level (Hauptschule), intermediate-level (Realschule), or upper-level (Gymnasium) schools. As shown in Figure 3, there are many education paths that students can choose to enter the labour market. The difference between the lower- and the upper-level is that the lower-level focuses more on vocational-oriented courses. On the other hand, the upper-level has a more academic-based orientation.

Age

Labour-Market Tertiary Education 18 and more

Grade

12

Vocational Education and Training

Upper-level

(Some Schools have

13th Grade)

17

11 16

10

15

Some Schools have

10th Grade Intermediate-level

9

Lower-level

14

8 13

Figure 3. German Secondary School System Transition to Labour-Market

Another feature of the German Education System is the importance of Vocational Education and Training (VET). It consists of a smooth transition from school to the labour market. This programme is specially designed for school-leavers from the lower- and the intermediate-level school.

Nonetheless, upper-level school-leavers can also access VET. However, this is rarely the case. There are mainly two types of vocational training. Firstly, the less common is the fully school- based vocational training, which requires at least an intermediate-level diploma. Also, this type of training is more linked to female-typical occupations. The second type of training consists of a Dual System of a school-based and firm-based programme. This firm-based programme is also referred to as an 'Apprenticeship' System. These traineeships are more appealing than fully-school based programmes for school-leavers as they acquired formal occupational qualifications, which smooths the transition to the labour market (Malin & Jacob, 2018).

Female students often take fully-school based programmes because these training programmes offer mainly training for no-STEM occupations (in the service sector and healthcare). Mar Lobato Gomez (2019) -MSc Economics (Maastricht University), Master Thesis

On the other hand, the dual training has a higher degree of segmentation and standardisation. There are hundreds of different dual training programmes for which different agents (worker representatives, chambers of trade industry and the State) have standardised the curricula, examination procedures and other requirements (Jacob, Kleinert, & K?hhirt, 2009).

Regarding the distribution of students across different tracks, it can be said that demand has changed over time. Traditionally, students needed to take a formal exam to be able to study in higher educational tracks. Consequently, the number of students taking the lower-level secondary education (Hauptschule) was larger. Nevertheless, since the abolishment of this formal exam in the 1960s, the distribution of students across the different tracks has evenly converged over time (Dustmann, 2004).

The standardisation of the German Education System offers equal opportunities for educational choice (Dustmann, 2004). Including the same gender opportunities, as observed in the convergence in Figure 4. This suggests that the disparities between gender-specific career choices for STEM occupations have to be explained by other factors.

Aside from regional labour conditions and individual-level factors, the historical context of Germany has shaped the disparities between the East and the West of Germany. This mainly concerns the role of women as labour force.

East-West Germany Comparison: female labour employment

The development of female labour was different in East and West Germany. The Eastern side of the country was influenced by the communist ideology, which aimed at maximising the employment of labour. Consequently, the level of employment of full-time female labour was close to men.

Although women remained with the burden of performing household-related tasks and  providing care, female employment was needed to fulfil the rapid increase of industrialisation (Pollert, 2003; Matysiak & Steinmetz, 2006). However, they were concentrated in fewer sectors, especially on 'lighter' industrial and low-skilled occupations (Pollert, 2003). Additionally, the labour market conditions (with low competition, job security and institutional support for working mothers) allowed the maintenance of high levels of female employment (Matysiak & Steinmetz, 2006).

This pattern changed after the communist regime was abolished in 1989. As the economy was transitioning and the tertiary sector was expanding, the market was demanding higher-skilled labour.

Consequently, once the communist regime was dissolved, women in East Germany had more difficulties in competing in the labour market (Pollert, 2003). Nonetheless, despite the drop in full-time female employment in East Germany, the employment rates among working mothers remained Mar Lobato Gomez (2019) -MSc Economics (Maastricht University), Master Thesis higher than in West Germany. This was partly due to the increase in part-time female employment in East Germany (Matysiak & Steinmetz, 2006: 9, 2008).

On the other hand, West Germany has generally been classified as a capitalist system. In contrast to the Eastern side, female labour participation gradually increased over time as the tertiary sector expanded. Also, in comparison to men's participation level, female employment has been low (Matysiak & Steinmetz, 2008). Partly, this is due to the lower amount of childcare facilities in welfare states, disincentivising women (particularly young mothers) to work full-time (Leira, 2002).

Another factor explaining disparities in regional female employment is the differences in competition and gender-segregation. After the unification, productivity (and labour competition) has remained higher in West Germany, although the industry structure remained stronger in East Germany (Klodt, 2000). It implies that in the STEM industries, women have two difficulties.

  • First, to compete with other men for a male-dominated occupation.
  • Secondly, the level of competition increases depending on the competitive characteristics of the area (Kreimer, 2004: 226).

By considering that female employment is more extensive in East Germany and labour competition is lower in this area, the following hypothesis is expected:

Hypothesis 4:

The likelihood of female students to choose a STEM occupation is higher if they are located in East Germany, controlling for other explanatory factors.

Updated: Oct 10, 2024
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German Labour Markets Tendencies. (2019, Dec 14). Retrieved from https://studymoose.com/german-labour-markets-tendencies-essay

German Labour Markets Tendencies essay
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