Rising Wage Dispersion, After All ! : The German Wage Structure at the Turn of the Century

Kohn, Karsten

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URL:	http://ub-madoc.bib.uni-mannheim.de/1247
URN:	urn:nbn:de:bsz:180-madoc-12477
Document Type:	Working paper
Year of publication:	2006
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: C24 J31 ,
Subject headings (SWD):	Deutschland , Lohnstruktur , Arbeitsmarkt , Ungleichheit
Abstract:	Using register data from the IAB employment sample, this paper studies the wage structure in the German labor market throughout the years 1992-2001. Wage dispersion has generally been rising. The increase was more pronounced in East Germany and occurred predominantly in the lower part of the wage distribution for women and in the upper part for men. Censored quantile wage regressions reveal diverse age and skill patterns. Applying Machado/Mata (2005)-type decompositions I conclude that differences in the composition of the work force only had a small impact on the observed wage differentials between East and West Germany, but changes in the characteristics captured better parts of the observed wage changes over time.
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