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The urban-rural wage gap in Germany

Author

Listed:
  • Brixy, Udo

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Brunow, Stephan

    (HdBA)

  • Ochsen, Carsten

    (HdBA ; Univ. Rostock)

Abstract

"We compare real wage differences between centralized and peripheral areas and highly centralized and peripheral areas using vast information of German administrative data that contains more than 2.8 Million individuals and 660,000 firms. We provide substantial empirical evidence that most of the wage gaps can be explained by differences in endowments of individual and firm characteristics, particularly when unobserved individual and firm heterogeneity is appropriately accounted for. Our interpretation is that the selectivity of workers and firms in space explains most of the real wage gap between peripheral and (highly) centralized regions, and returns to characteristics are honoured rather equally in all regional types." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Brixy, Udo & Brunow, Stephan & Ochsen, Carsten, 2022. "The urban-rural wage gap in Germany," IAB-Discussion Paper 202204, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:202204
    DOI: 10.48720/IAB.DP.2204
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    Keywords

    Bundesrepublik Deutschland ; IAB-Open-Access-Publikation ; Auswirkungen ; Ballungsraum ; abhängig Beschäftigte ; Integrierte Erwerbsbiografien ; Lohnhöhe ; Lohnunterschied ; Peripherie ; regionale Disparität ; regionaler Vergleich ; Standortwahl ; Unternehmen ; Ursache ; Arbeitsplatzwahl ; 2018-2018;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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