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Wage Structure and Labor Mobility in the West German Private Sector, 1993-2000

In: The Structure of Wages: An International Comparison

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  • Holger Alda
  • Lutz Bellmann
  • Hermann Gartner

Abstract

"Since the early 90's the West German firms have to deal with sharp changes of economic environment: the German Unification, the emerging competitors in the east European countries and the deregulation of several labour market institutions. We analyse the wage structure, the wage changes and the labour mobility during this period using the linked employer-employee dataset from the Institute for Employment Research for the years 1993, 1995 and 2000. The dataset allows us to investigate especially the wage structure within firms and the exit and entry rates of workers at firm level. The main finding is that both wage inequality within and between firms and workers mobility was rising during the 90's. This development is mainly driven by the dynamics of high wage workers and high wage firms. The rising variance of wages can only partly be explained by a change in the occupational composition of firms. A decomposition of the variance of wages shows that the importance of the firm-specific variation increases, whereas that of human capital variation decreases." (Author's abstract, IAB-Doku) ((en))

(This abstract was borrowed from another version of this item.)

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This chapter was published in:

  • Edward P. Lazear & Kathryn L. Shaw, 2009. "The Structure of Wages: An International Comparison," NBER Books, National Bureau of Economic Research, Inc, number laze08-1, October.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 2373.

    Handle: RePEc:nbr:nberch:2373

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    1. Bauer, Thomas & Bender, Stefan & Bonin, Holger, 2004. "Dismissal Protection and Worker Flows in Small Establishments," CEPR Discussion Papers 4379, C.E.P.R. Discussion Papers.
    2. Kohaut, Susanne & Schnabel, Claus, 2003. "Verbreitung, Ausmaß und Determinanten der übertariflichen Entlohnung," Discussion Papers 23, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    3. Rainer Winkelmann, 1997. "How young workers get their training: A survey of Germany versus the United States," Journal of Population Economics, Springer, vol. 10(2), pages 159-170.
    4. Goux, Dominique & Maurin, Eric, 1999. "Persistence of Interindustry Wage Differentials: A Reexamination Using Matched Worker-Firm Panel Data," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 492-533, July.
    5. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier.
    6. Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995. "High-Wage Workers and High-Wage Firms," Cahiers de recherche 9503, Universite de Montreal, Departement de sciences economiques.
    7. Verick, Sher, 2004. "Threshold Effects of Dismissal Protection Legislation in Germany," IZA Discussion Papers 991, Institute for the Study of Labor (IZA).
    8. John M. Abowd & Robert H. Creecy & Francis Kramarz, 2002. "Computing Person and Firm Effects Using Linked Longitudinal Employer-Employee Data," Longitudinal Employer-Household Dynamics Technical Papers 2002-06, Center for Economic Studies, U.S. Census Bureau.
    9. Andrews, Martyn J. & Schank, Thorsten & Upward, Richard, 2004. "Practical estimation methods for linked employer-employee data," Discussion Papers 29, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    10. Max Gruetter & Rafael Lalive, 2004. "Job Mobility And Industry Wage Differentials Evidence From Matched Employer Employee Data," Royal Economic Society Annual Conference 2004 140, Royal Economic Society.
    11. Büttner, Thiess & Fitzenberger, Bernd, 1998. "Central wage bargaining and local wage flexibility: evidence from the entire wage distribution," ZEW Discussion Papers 98-39, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    12. Erica L. Groshen, 1989. "Do wage differences among employees last?," Working Paper 8906, Federal Reserve Bank of Cleveland.
    13. Hausman, Jerry A. & Taylor, William E., 1981. "Panel data and unobservable individual effects," Journal of Econometrics, Elsevier, vol. 16(1), pages 155-155, May.
    14. Kölling, Arnd & Rässler, Susanne, 2004. "Editing and multiply imputing German establishment panel data to estimate stochastic production frontier models," IAB Discussion Paper 200405, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Alda, Holger & Bender, Stefan & Gartner, Hermann, 2005. "The linked employer-employee dataset of the IAB (LIAB)," IAB Discussion Paper 200506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    16. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The reform of the German works constitution act: a critical assessment," Discussion Papers 16, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    17. Gartner, Hermann & Rässler, Susanne, 2005. "Analyzing the changing gender wage gap based on multiply imputed right censored wages," IAB Discussion Paper 200505, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    Cited by:
    1. Gerlach, Knut & Stephan, Gesine, 2005. "Tarifverträge und betriebliche Entlohnungsstrukturen," IAB Discussion Paper 200520, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Alda, Holger & Bender, Stefan & Gartner, Hermann, 2005. "The linked employer-employee dataset of the IAB (LIAB)," IAB Discussion Paper 200506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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