Firm wage differentiation in Eastern Germany
AbstractIn Eastern Germany, wage differentiation between firms has clearly grown, parallel to individual wage differentials. Nevertheless, the wage spread between firms is still much less than in Western Germany. In this paper, a non-parametric decomposition is used to analyze the difference between the wages spread in the two parts of Germany. Only part of the difference can be explained by different economic structures in Eastern Germany. By far, the greater part of the difference in the wage spread between firms in the two parts of the country is due to the fact that differences in wages paid by firms of the same type in Eastern Germany are much less than those of their counterparts in Western Germany. A striking result of the analysis is that the gap in the wage variance between Eastern and Western Germany is increasing. Copyright (c) 2008 The Authors.
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Bibliographic InfoArticle provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.
Volume (Year): 16 (2008)
Issue (Month): 2 (04)
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- Robert Orlowski & Regina T. Riphahn, 2008.
"The East German Wage Structure after Transition,"
CESifo Working Paper Series
2511, CESifo Group Munich.
- Robert Orlowski & Regina T. Riphahn, 2009. "The East German Wage Structure after Transition," Working Papers 073, Bavarian Graduate Program in Economics (BGPE).
- Robert Orlowski & Regina T. Riphahn, 2008. "The East German Wage Structure after Transition," SOEPpapers on Multidisciplinary Panel Data Research 148, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Orlowski, Robert & Riphahn, Regina T., 2008. "The East German Wage Structure after Transition," IZA Discussion Papers 3861, Institute for the Study of Labor (IZA).
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