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The 2011 Break in the Part-Time Indicator and the Evolution of Wage Inequality in Germany

Author

Listed:
  • Fitzenberger, Bernd

    (Institute for Employment Research (IAB), Nuremberg)

  • Seidlitz, Arnim

    (Institute for Employment Research (IAB), Nuremberg)

Abstract

German social security records involve an indicator for part-time or full-time work. In 2011, the reporting procedure was changed suggesting that a fraction of worker recorded to be working full-time before the change were in fact part-time workers. This study develops a correction based on estimating the probability of being a part-time worker before and after the break. Using the correction, the paper confirms that the rise in wage inequality among full-time workers in West Germany until 2010 is not a spurious consequence of the misreporting of working time.

Suggested Citation

  • Fitzenberger, Bernd & Seidlitz, Arnim, 2019. "The 2011 Break in the Part-Time Indicator and the Evolution of Wage Inequality in Germany," IZA Discussion Papers 12529, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp12529
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    References listed on IDEAS

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    1. David Card & Jörg Heining & Patrick Kline, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 967-1015.
    2. Dirk Antonczyk & Thomas DeLeire & Bernd Fitzenberger, 2018. "Polarization and Rising Wage Inequality: Comparing the U.S. and Germany," Econometrics, MDPI, vol. 6(2), pages 1-33, April.
    3. Ganzer, Andreas & Schmucker, Alexandra & Vom Berge, Philipp & Wurdack, Anja, 2017. "Sample of integrated labour market biographies - regional file 1975-2014 : (SIAB-R 7514)," FDZ Datenreport. Documentation on Labour Market Data 201701_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Martin Biewen & Bernd Fitzenberger & Jakob de Lazzer, 2018. "The role of employment interruptions and part-time work for the rise in wage inequality," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-34, December.
    5. Ludsteck, Johann & Thomsen, Ulrich, 2016. "Imputation of the working time information for the employment register data," FDZ Methodenreport 201601_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. repec:iab:iabfme:201601(en is not listed on IDEAS
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    Cited by:

    1. Mario Bossler & Thorsten Schank, 2023. "Wage Inequality in Germany after the Minimum Wage Introduction," Journal of Labor Economics, University of Chicago Press, vol. 41(3), pages 813-857.
    2. Daniel Baumgarten & Gabriel Felbermayr & Sybille Lehwald, 2020. "Dissecting Between‐Plant and Within‐Plant Wage Dispersion: Evidence from Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(1), pages 85-122, January.

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    Keywords

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    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs