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The impact of changing youth employment patterns on future wages

Author

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  • Umkehrer, Matthias

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"This study examines employment patterns on the labor market for German apprenticeship graduates and returns to early-career employment stability over the past four decades. The data indicate the decreasing stability of youth employment since the late 1980s. Exploiting variation in the timing of macroeconomic shocks, I identify true state dependencies and find that stable employment early in professional life exhibits significant wage returns in future periods. These returns are particularly pronounced at the bottom of the wage distribution and have substantially increased during the 1990s. Accordingly, securing the training-to- work transitions would primarily be beneficial for the wage growth of workers with a generally low earning potential." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Umkehrer, Matthias, 2015. "The impact of changing youth employment patterns on future wages," IAB-Discussion Paper 201531, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201531
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    Cited by:

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    2. Möller, Joachim, 2016. "Lohnungleichheit: Gibt es eine Trendwende? (German wage inequality: Is there a trend reversal?)," IAB-Discussion Paper 201609, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Johann Fuchs & Enzo Weber, 2017. "Long-term unemployment and labour force participation: a decomposition of unemployment to test for the discouragement and added worker hypotheses," Applied Economics, Taylor & Francis Journals, vol. 49(60), pages 5971-5982, December.
    4. Mendolicchio, C. & Pietra, T., 2016. "Endowment redistribution and Pareto improvements in GEI economies," Journal of Mathematical Economics, Elsevier, vol. 67(C), pages 181-190.

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Ausbildungsabsolventen ; Berufsverlauf ; Beschäftigungsdauer ; Betriebszugehörigkeit ; Jugendliche ; junge Erwachsene ; Lohnentwicklung;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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