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Wage structure and labour mobility in the West German private sector 1993-2000

  • Alda, Holger

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Bellmann, Lutz

    ()

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Gartner, Hermann

    ()

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

"Since the early 90's the West German firms have to deal with sharp changes of economic environment: the German Unification, the emerging competitors in the east European countries and the deregulation of several labour market institutions. We analyse the wage structure, the wage changes and the labour mobility during this period using the linked employer-employee dataset from the Institute for Employment Research for the years 1993, 1995 and 2000. The dataset allows us to investigate especially the wage structure within firms and the exit and entry rates of workers at firm level. The main finding is that both wage inequality within and between firms and workers mobility was rising during the 90's. This development is mainly driven by the dynamics of high wage workers and high wage firms. The rising variance of wages can only partly be explained by a change in the occupational composition of firms. A decomposition of the variance of wages shows that the importance of the firm-specific variation increases, whereas that of human capital variation decreases." (Author's abstract, IAB-Doku) ((en))

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Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200518.

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Length: 63 pages
Date of creation: 23 Aug 2005
Date of revision:
Publication status: published in: E. P. Lazear & K. L. Shaw (Ed.): The structure of wages : an international comparison. Chicago 2009, p. 261-313
Handle: RePEc:iab:iabdpa:200518
Contact details of provider: Postal: Regensburger Str. 104, D-90327 Nürnberg
Phone: 0911/179-0
Fax: 0911/179-3258
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  2. Gartner, Hermann & Rässler, Susanne, 2005. "Analyzing the changing gender wage gap based on multiply imputed right censored wages," IAB Discussion Paper 200505, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The reform of the German works constitution act: a critical assessment," Discussion Papers 16, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  4. Upward, Richard & Schank, Thorsten & J. Andrews, Martyn, 2005. "Practical estimation methods for linked employer-employee data," Discussion Papers 29 [rev.], Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  5. Alda, Holger & Bender, Stefan & Gartner, Hermann, 2005. "The linked employer-employee dataset of the IAB (LIAB)," IAB Discussion Paper 200506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. Max Gruetter & Rafael Lalive, 2004. "Job Mobility And Industry Wage Differentials Evidence From Matched Employer Employee Data," Royal Economic Society Annual Conference 2004 140, Royal Economic Society.
  7. Alda, Holger, 2005. "Datenbeschreibung der Version 1 des LIAB-Querschnittmodells (LIAB Cross-Sectional Model Version 1 - Data Description)," FDZ Datenreport. Documentation on Labour Market Data 200502_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  8. Alda, Holger, 2005. "Betriebe und Beschäftigte in den Linked-Employer-Employee-Daten : LIAB des Instituts für Arbeitsmarkt- und Berufsforschung (Establishments and Employees of the Linked Employer-Employee Data of the Ins," FDZ Datenreport. Documentation on Labour Market Data 200501_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  9. Bauer, Thomas & Bender, Stefan & Bonin, Holger, 2004. "Dismissal Protection and Worker Flows in Small Establishments," CEPR Discussion Papers 4379, C.E.P.R. Discussion Papers.
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  11. Goux, Dominique & Maurin, Eric, 1999. "Persistence of Interindustry Wage Differentials: A Reexamination Using Matched Worker-Firm Panel Data," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 492-533, July.
  12. Kohaut, Susanne & Schnabel, Claus, 2003. "Verbreitung, Ausmaß und Determinanten der übertariflichen Entlohnung," Discussion Papers 23, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  13. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-98, November.
  14. Rainer Winkelmann, 1997. "How young workers get their training: A survey of Germany versus the United States," Journal of Population Economics, Springer, vol. 10(2), pages 159-170.
  15. John M. Abowd & Robert H. Creecy & Francis Kramarz, 2002. "Computing Person and Firm Effects Using Linked Longitudinal Employer-Employee Data," Longitudinal Employer-Household Dynamics Technical Papers 2002-06, Center for Economic Studies, U.S. Census Bureau.
  16. Verick, Sher, 2004. "Threshold Effects of Dismissal Protection Legislation in Germany," IZA Discussion Papers 991, Institute for the Study of Labor (IZA).
  17. Büttner, Thiess & Fitzenberger, Bernd, 1998. "Central wage bargaining and local wage flexibility: evidence from the entire wage distribution," ZEW Discussion Papers 98-39, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  18. Kölling, Arnd & Rässler, Susanne, 2004. "Editing and multiply imputing German establishment panel data to estimate stochastic production frontier models," IAB Discussion Paper 200405, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  19. Erica L. Groshen, 1989. "Do wage differences among employees last?," Working Paper 8906, Federal Reserve Bank of Cleveland.
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