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Rising Wage Dispersion, After All ! The German Wage Structure at the Turn of the Century

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Kohn, Karsten

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Abstract

Using register data from the IAB employment sample, this paper studies the wage structure in the German labor market throughout the years 1992{2001. Wage dispersion has generally been rising. The increase was more pronounced in East Germany and occurred predominantly in the lower part of the wage distribution for women and in the upper part for men. Censored quantile wage regressions reveal diverse age and skill patterns. Applying Machado/Mata (2005)-type decompositions I conclude that differences in the composition of the work force only had a small impact on the observed wage differentials between East and West Germany, but changes in the characteristics captured better parts of the observed wage changes over time. --

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 06-31.

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Date of creation: 2006
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Handle: RePEc:zbw:zewdip:4615

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Related research
Keywords: Wage inequality; censored quantile regression; Machado/Mata decomposition; IABS; East Germany; West Germany;

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models

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  1. Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August. [Downloadable!] (restricted)
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  1. Teschner, Tatjana, 2009. "Der Einfluss der Tarifbindung auf Lohnhöhe und Lohnverteilung," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover dp-431, Universität Hannover, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
  2. Teschner, Tatjana, 2009. "Der Einfluss des Lohnsetzungsregimes auf das geschlechtsspezifische Lohndifferenzial," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover dp-432, Universität Hannover, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
  3. Gernandt, Johannes & Pfeiffer, Friedhelm, 2008. "Wage Convergence and Inequality after Unification: (East) Germany in Transition," ZEW Discussion Papers 08-022, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  4. Genre, Véronique & Kohn, Karsten & Momferatou, Daphne, 2009. "Understanding Inter-Industry Wage Structures in the Euro Area," IZA Discussion Papers 4114, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Jirjahn, Uwe & Kraft, Kornelius, 2008. "Teamwork and Intra-Firm Wage Dispersion among Blue-Collar Workers," IZA Discussion Papers 3291, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Mehtabul Azam, 2008. "Changes in Wage Structure in Urban India, 1983-2004: A Quantile Regression Decomposition," Departmental Working Papers 0807, Southern Methodist University, Department of Economics. [Downloadable!]
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  7. Heiko Peters, 2008. "Development of Wage Inequality for Natives and Immigrants in Germany: Evidence from Quantile Regression and Decomposition," SOEPpapers 113, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
  8. Claudia M. Buch & Jörn Kleinert, 2007. "Multinational Firms and New Protectionisms," IAW Discussion Papers 33, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
  9. Johannes Gernandt & Friedhelm Pfeiffer, 2007. "Rising Wage Inequality in Germany," SOEPpapers 14, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
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