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Seniority in Germany: New evidence on returns to tenure for male full-time workers

  • Orlowski, Robert
  • Riphahn, Regina T.

"This study uses recent data taken from the German Socio-Economic Panel (2002-2006) to evaluate the extent of and heterogeneity in returns to tenure for men in eastern and western Germany, employed in both the private and the public sector. We find significantly different wage patterns in eastern and western Germany as well as between the private and public sectors. Irrespective of the particular subsample, the application of the Altonji-Shakotko estimation approach yields minute and insignificant returns to tenure and more substantial returns to experience. The profile of the eastern German wage structure is surprisingly flat: after the first ten years of experience - and in contrast to the situation in western Germany - there appear to be no returns to additional general human capital." (Author's abstract, IAB-Doku) ((en)) Additional Information Kurzfassung (deutsch) Executive summary (English)

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Article provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its journal Zeitschrift für ArbeitsmarktForschung – Journal for Labour Market Research.

Volume (Year): 41 (2008)
Issue (Month): 2/3 ()
Pages: 139-155

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Handle: RePEc:iab:iabzaf:v:2008:i:2/3:p:139-155
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  1. Robert Amann & Tobias Klein, 2006. "Returns to Type or Tenure?," Working Papers of the Research Group Heterogenous Labor 06-13, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
  2. Joseph Altonji & R. Shakotko, 1985. "Do Wages Rise with Job Seniority?," Working Papers 567, Princeton University, Department of Economics, Industrial Relations Section..
  3. Blaise Melly, 2005. "Public-private sector wage differentials in Germany: Evidence from quantile regression," Empirical Economics, Springer, vol. 30(2), pages 505-520, 09.
  4. Katrin Schleife, 2006. "Computer Use and Employment Status of Older Workers - An Analysis Based on Individual Data," LABOUR, CEIS, vol. 20(2), pages 325-348, 06.
  5. Elke Holst & Dean R. Lillard & Thomas A. DiPrete, 2001. "Proceedings of the 2000 Fourth International Conference of German Socio-Economic Panel Study Users (GSOEP 2000): Editorial Introduction," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 5-6.
  6. Christian Dustmann & Arthur Van Soest, 1997. "Wage structures in the private and public sectors in West Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 18(3), pages 225-247, August.
  7. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
  8. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  9. Parent, Daniel, 2000. "Industry-Specific Capital and the Wage Profile: Evidence from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 306-23, April.
  10. Robert H. Topel, 1990. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," NBER Working Papers 3294, National Bureau of Economic Research, Inc.
  11. Balestra, Pietro & Varadharajan-Krishnakumar, Jayalakshmi, 1987. "Full Information Estimations of a System of Simultaneous Equations with Error Component Structure," Econometric Theory, Cambridge University Press, vol. 3(02), pages 223-246, April.
  12. Axel Heitmueller & Kostas G. Mavromaras, 2007. "On The Post-Unification Development Of Public And Private Pay In Germany," Manchester School, University of Manchester, vol. 75(4), pages 422-444, 07.
  13. Riphahn, Regina T., 2004. "Employment protection and effort among German employees," Economics Letters, Elsevier, vol. 85(3), pages 353-357, December.
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