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Wage Growth and Job Mobility in the United Kingdom and Germany

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Author Info
Christian Dustmann
Sonia C. Pereira

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Abstract

Wage Growth and Job Mobility in the United Kingdom and Germany Christian Dustmann and Sonia C. Pereira. Dustmann Using data from the British Household Panel Survey for 1991-99 and the German Socio-Economic Panel for 1984-99, the authors investigate job mobility and estimate the returns to tenure and experience. Job mobility was higher in the United Kingdom than in Germany. Returns to experience also seem to have been substantially higher in the United Kingdom, where the wage gain associated with ten years of labor market experience was around 80%, compared to 35% in Germany. The low returns to labor market experience in Germany appear to have been accountable to one group of workers: those with apprenticeship training, who tended to receive fairly high starting wages but to experience relatively low wage growth thereafter. Wage growth due to labor market experience was similar between the two countries for the other skill groups. Returns to tenure were close to zero in both countries.

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Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 61 (2008)
Issue (Month): 3 (April)
Pages: 374-393
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Handle: RePEc:ilr:articl:v:61:y:2008:i:3:p:374-393

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  1. Orlowski, Robert & Riphahn, Regina T., 2008. "The East German Wage Structure after Transition," IZA Discussion Papers 3861, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Giovanni Sulis, 2009. "Wage Returns to Experience and Tenure for Young Men in Italy," ESE Discussion Papers 189, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
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This page was last updated on 2009-12-14.

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