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The dynamic structure of wages in Germany 1976 - 1984: A cohort analysis

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  • Fitzenberger, Bernd
  • Hujer, Reinhard
  • MaCurdy, Thomas E.
  • Schnabel, Reinhold

Abstract

Based on social security data, this paper analyzes wage trends for full employed males by estimating (censored) quantile regressions as functions of age, cohort, education, and year. We test whether a parsimonious specification separating life cycle effects from macroeconomic effects can describe the dynamics of wages. Our results indicate that insider wages are uniformly affected by a acroeconomic trend. For some education groups, this also holds for entry wages. Since within-inequality stays fairly constant, the estimated profiles characterize the entire wage distribution. After controlling for age and cohort, also wage differentials across education remain roughly stable..

Suggested Citation

  • Fitzenberger, Bernd & Hujer, Reinhard & MaCurdy, Thomas E. & Schnabel, Reinhold, 1995. "The dynamic structure of wages in Germany 1976 - 1984: A cohort analysis," Discussion Papers 22, University of Konstanz, Center for International Labor Economics (CILE).
    • Handle: RePEc:zbw:koncil:22
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    References listed on IDEAS

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    6. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1992. "On the Labor Market Effects of Immigration and Trade," NBER Chapters, in: Immigration and the Work Force: Economic Consequences for the United States and Source Areas, pages 213-244, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Bernd Fitzenberger & Claudia Kurz, 2003. "New insights on earnings trends across skill groups and industries in West Germany," Empirical Economics, Springer, vol. 28(3), pages 479-514, July.
    2. Schnabel, Reinhold, 1998. "Rates of return of the German pay-as-you-go pension system," Papers 98-56, Sonderforschungsbreich 504.
    3. Axel Borsch-Supan & Reinhold Schnabel, 1999. "Social Security and Retirement in Germany," NBER Chapters, in: Social Security and Retirement around the World, pages 135-180, National Bureau of Economic Research, Inc.
    4. Inkmann, Joachim & Klotz, Stefan & Pohlmeier, Winfried, 1998. "Growing into Work - Pseudo Panel Data Evidence on Labor Market Entrance in Germany," ZEW Discussion Papers 98-47, ZEW - Leibniz Centre for European Economic Research.
    5. Franz, Wolfgang, 1995. "Die Lohnfindung in Deutschland in einer internationalen Perspektive: Ist das deutsche System ein Auslaufmodell?," Discussion Papers 24, University of Konstanz, Center for International Labor Economics (CILE).

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