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Wage Mobility in East and West Germany

  • Regina T. Riphahn
  • Daniel Schnitzlein

This article studies the long run patterns and explanations of wage mobility as a characteristic of regional labor markets. Using German administrative data we describe wage mobility since 1975 in West and since 1992 in East Germany. Wage mobility declined substantially in East Germany in the 1990s and moderately in East and West Germany since the late 1990s. Therefore, wage mobility does not balance recent increases in cross-sectional wage inequality. We apply RIF (recentered influence function) regression based decompositions to measure the role of potential explanatory factors behind these mobility changes. Increasing job stability is an important factor associated with the East German mobility decline.

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File URL: http://www.bgpe.de/texte/DP/114_RiphahnSchnitzlein.pdf
File Function: First version, 2011
Download Restriction: no

Paper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 114.

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Length: 66 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:bav:wpaper:114_riphahnschnitzlein
Contact details of provider: Web page: http://www.bgpe.de/

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  1. Bernd Fitzenberger & Aderonke Osikominu & Robert Völter, 2006. "Imputation Rules to Improve the Education Variable in the IAB Employment Subsample," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 126(3), pages 405-436.
  2. repec:ese:iserwp:2007-14 is not listed on IDEAS
  3. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
  4. Richard Burkhauser & Shuaizhang Feng & Stephen Jenkins, 2007. "Using the P90/P10 Index to Measure U.S. Inequality Trends with Current Population Survey Data: A View From Inside the Census Bureau Vaults," Working Papers 07-17, Center for Economic Studies, U.S. Census Bureau.
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