New insights on earnings trends across skill groups and industries in West Germany
This paper provides an empirical analysis of the structure of earnings in West Germany across skill groups and industries. Our analysis is based on data from the German Socioeconomic Panel for the period 1984 to 1994. We estimate quantile regressions, both for the entire sample period and for each year separately, in order to obtain a finer picture of the earnings structure compared to conventional least squares methods. For robust standard error estimation, this study uses a block bootstrap procedure taking account of heteroskedasticity and autocorrelation in the error term. We also suggest a simple procedure to obtain a consistent estimate of inter-industry earnings variability. Our main findings are: first, pooled estimation comprising a uniform time trend is not rejected by the data, and second, the effects of human capital variables and industry dummies on earnings differ considerably across quantiles. Copyright Springer-Verlag Berlin Heidelberg 2003
Volume (Year): 28 (2003)
Issue (Month): 3 (July)
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- Fels, Joachim & Gundlach, Erich, 1990.
"More evidence on the puzzle of interindustry wage differentials: the case of West Germany,"
Open Access Publications from Kiel Institute for the World Economy
1448, Kiel Institute for the World Economy (IfW).
- Fels, Joachim & Gundlach, Erich, 1990. "More evidence on the puzzle of interindustry wage differentials: the case of West Germany," Kiel Working Papers 400, Kiel Institute for the World Economy (IfW).
- Winker, Peter, 1991. "Zur Messung der Lohndifferenzierung mit Entropiemaßen," Discussion Papers, Series II 158, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
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