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Do high incomes reflect individual performance? The determinants of high incomes in Germany

  • Hirschel, Dierk
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    In neoclassical economic theory the level of individual income is predominantly determined by individual job performance. Thus high incomes reflect the high marginal productivity of labour of the affluent working population. While the scientific research of poverty has a long tradition, nearly nothing is known about the rich. This study tries to diminish this research gap by investigating the structure of high labour incomes in Germany. By revealing the determinants of high incomes by descriptive and paneleconometric analyses mit Daten des Sozio-ökonomischen Panels, we want to answer the question if high incomes are especially the result of individual job performance or rather the result of social selection through social background or sexual discrimination

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    File URL: http://mpra.ub.uni-muenchen.de/5978/1/MPRA_paper_5978.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5978.

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    Date of creation: Aug 2003
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    Handle: RePEc:pra:mprapa:5978
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    1. Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995. "High-Wage Workers and High-Wage Firms," Cahiers de recherche 9503, Universite de Montreal, Departement de sciences economiques.
    2. Schmidt, Christoph M & Zimmermann, Klaus F, 1991. "Work Characteristics, Firm Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 705-10, November.
    3. William T. Dickens & Lawrence F. Katz, 1986. "Interindustry Wage Differences and Industry Characteristics," NBER Working Papers 2014, National Bureau of Economic Research, Inc.
    4. Altonji, Joseph G & Dunn, Thomas A, 1996. "The Effects of Family Characteristics on the Return to Education," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 692-704, November.
    5. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, March.
    6. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110 National Bureau of Economic Research, Inc.
    7. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc.
    8. Robert Erikson & John H. Goldthorpe, 2002. "Intergenerational Inequality: A Sociological Perspective," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 31-44, Summer.
    9. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    10. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
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