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The Changing Wage Distribution in Germany between 1985 and 2006

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  • Johannes Giesecke
  • Roland Verwiebe

Abstract

In this paper the changes in the wage distribution in (West-)Germany between 1985 and 2006 are analysed. The theoretical framework is based on the literature on skill-biased technological change (SBTC) and on structural theory. Analyses draw on descriptive measures of the development of wage inequality among blue- and white-collar workers as well as on regression analyses of individual and structural determinants of wages for the years 1985 to 2006. The results show that wage inequality remained fairly constant until the early 1990s, but started to increase from the mid-1990s onwards. Moreover, regression analyses reveal that this increase was paralleled by rising inter-class wage differentials, while returns to (higher) education decreased.

Suggested Citation

  • Johannes Giesecke & Roland Verwiebe, 2009. "The Changing Wage Distribution in Germany between 1985 and 2006," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(2), pages 191-201.
    • Handle: RePEc:aeq:aeqsjb:v129_y2009_i1_q1_p191-201
    DOI: 10.3790/schm.129.2.191
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    Citations

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    Cited by:

    1. Kai Ingwersen & Stephan L. Thomsen, 2021. "The immigrant-native wage gap in Germany revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 825-854, December.
    2. Eichhorst, Werner & Marx, Paul & Tobsch, Verena, 2013. "Non-Standard Employment across Occupations in Germany: The Role of Replaceability and Labour Market Flexibility," IZA Discussion Papers 7662, Institute of Labor Economics (IZA).
    3. Ulrike Stein, 2017. "Earnings Inequality in Germany: A Decomposition-Analysis," SOEPpapers on Multidisciplinary Panel Data Research 955, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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