Seniority in Germany: New Evidence on Returns to Tenure for Male Full-time Workers
This study uses recent data taken from the German Socioeconomic Panel (2002-2006) to evaluate the extent of and heterogeneity in returns to tenure for men in East and West Germany, employed in both the private and the public sector. We find significantly different wage patterns in East- and West Germany as well as between the private and public sector. Independent 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 East German wage structure is surprisingly flat: after the first ten years of experience - and in contrast to the situation in West Germany - there appear to be no returns to additional general human capital.
|Date of creation:||Dec 2007|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.bgpe.de/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
- 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.
- 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.
- Christian Dustmann & Arthur Van Soest, 1997.
"Wage structures in the private and public sectors in West Germany,"
Institute for Fiscal Studies, vol. 18(3), pages 225-247, August.
- Dustmann, C. & van Soest, A.H.O., 1997. "Wage structures in the private and public sectors in West Germany," Other publications TiSEM f1b3bfed-ce84-471a-a9d7-1, Tilburg University, School of Economics and Management.
- 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.
- Blaise Melly, 2005. "Public-private sector wage differentials in Germany: Evidence from quantile regression," Empirical Economics, Springer, vol. 30(2), pages 505-520, 09.
- Christian Dustmann & Costas Meghir, 2005.
"Wages, Experience and Seniority,"
Review of Economic Studies,
Oxford University Press, vol. 72(1), pages 77-108.
- Christian Dustmann & Costas Meghir, 1999. "Wages, experience and seniority," IFS Working Papers W99/01, Institute for Fiscal Studies.
- Dustmann, Christian & Meghir, Costas, 1999. "Wages, Experience and Seniority," CEPR Discussion Papers 2077, C.E.P.R. Discussion Papers.
- Christian Dustmann & Costas Meghir, 2001. "Wages, experience and seniority," IFS Working Papers W01/01, Institute for Fiscal Studies.
- Dustmann, C. & van Soest, A., 1997.
"Public and Private Sector Wages of Male Workers in Germany,"
Economics Working Papers
eco97/13, European University Institute.
- Dustmann, Christian & van Soest, Arthur, 1998. "Public and private sector wages of male workers in Germany," European Economic Review, Elsevier, vol. 42(8), pages 1417-1441, September.
- Axel Heitmueller & Kostas G. Mavromaras, 2007.
"On The Post-Unification Development Of Public And Private Pay In Germany,"
University of Manchester, vol. 75(4), pages 422-444, 07.
- Heitmueller, Axel & Mavromaras, Kostas G., 2005. "On the Post-Unification Development of Public and Private Pay in Germany," IZA Discussion Papers 1696, Institute for the Study of Labor (IZA).
- 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.
- Cornelia Luchsinger & Jörg Wild & Rafael Lalive, 2001.
"Do Wages Rise with Job Seniority? The Swiss Case,"
CEPE Working paper series
01-07, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Joseph G. Altonji & Robert A. Shakotko, 1987. "Do Wages Rise with Job Seniority?," Review of Economic Studies, Oxford University Press, vol. 54(3), pages 437-459.
- 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.
- Topel, Robert H, 1991.
"Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority,"
Journal of Political Economy,
University of Chicago Press, vol. 99(1), pages 145-76, February.
- Robert H. Topel, 1990. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," NBER Working Papers 3294, National Bureau of Economic Research, Inc.
- Riphahn, Regina T., 2004. "Employment protection and effort among German employees," Economics Letters, Elsevier, vol. 85(3), pages 353-357, December.
When requesting a correction, please mention this item's handle: RePEc:bav:wpaper:036_orlowski_riphahn. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rebecca Schrader)
If references are entirely missing, you can add them using this form.