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New insights on earnings trends across skill groups and industries in West Germany

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Author Info
Bernd Fitzenberger
Claudia Kurz
Abstract

This paper provides an empirical analysis of the structure of earnings in West Germany across skill groups and industries. Our analysis is based on data from the German Socioeconomic Panel for the period 1984 to 1994. We estimate quantile regressions, both for the entire sample period and for each year separately, in order to obtain a finer picture of the earnings structure compared to conventional least squares methods. For robust standard error estimation, this study uses a block bootstrap procedure taking account of heteroskedasticity and autocorrelation in the error term. We also suggest a simple procedure to obtain a consistent estimate of inter-industry earnings variability. Our main findings are: first, pooled estimation comprising a uniform time trend is not rejected by the data, and second, the effects of human capital variables and industry dummies on earnings differ considerably across quantiles. Copyright Springer-Verlag Berlin Heidelberg 2003

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File URL: http://hdl.handle.net/10.1007/s001810200142
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Article provided by Springer in its journal Empirical Economics.

Volume (Year): 28 (2003)
Issue (Month): 3 (July)
Pages: 479-514
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Handle: RePEc:spr:empeco:v:28:y:2003:i:3:p:479-514

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Related research
Keywords: Key words: Earnings Structure across Skill Groups and Industries Quantile Regression Block Bootstrap JEL classification: J31 C23

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  1. Wiji Arulampalam & Alison Booth & Mark L. Bryan, 2006. "Are there Asymmetries in the Effects of Training on the Conditional Male Wage Distribution?," CEPR Discussion Papers 523, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
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