Rising wage inequality in Germany: increasing heterogeneity and changing selection into full-time work

Biewen, Martin ; Fitzenberger, Bernd ; Lazzer, Jakob de

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URL: https://madoc.bib.uni-mannheim.de/43662
URN: urn:nbn:de:bsz:180-madoc-436628
Document Type: Working paper
Year of publication: 2017
The title of a journal, publication series: ZEW Discussion Papers
Volume: 17-048
Place of publication: Mannheim
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: J31 , J20 , J60,
Keywords (English): Germany , wage inequality , reweighting , composition effects
Abstract: This study revisits the increase in wage inequality in Germany. Accounting for changes in various sets of observables, composition changes explain a large part of the increase in wage inequality among full-time workers. The composition effects are larger for females than for males, and increasingly heterogenous labor market histories play an important role. Furthermore, we find strong effects of education for males and strong effects of age and experience for females. Changes in industry and occupation explain fairly little. Extending the analysis to total employment confirms the basic findings, while revealing substantial negative selection into part-time work.

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