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Structural change and wage inequality: Evidence from German micro data

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  • Henze, Philipp

Abstract

This paper measures the impact of sectoral composition, international trade and technological progress on the rising wage gap in Germany. I find a positive effect of the increasing importance of services on the rising wage gap in Germany that is comparable to the effects of international trade and technological change. To quantify the causal relationship between the structural change of the German economy and the wage premium, I use the Establishment History Panel (in German: Betriebs-Historik-Panel - BHP), a detailed establishment-level data set provided by the German Federal Employment Office covering the period 1975-2010. This empirical work puts the focus on an important cause of the rising wage gap that so far has been largely ignored by the literature.

Suggested Citation

  • Henze, Philipp, 2014. "Structural change and wage inequality: Evidence from German micro data," Center for European, Governance and Economic Development Research Discussion Papers 204, University of Goettingen, Department of Economics.
  • Handle: RePEc:zbw:cegedp:204
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    References listed on IDEAS

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    Cited by:

    1. Henze, Philipp, 2015. "Structural change and total factor productivity: Evidence from Germany," Economics Working Papers 2015-03, Christian-Albrechts-University of Kiel, Department of Economics.
    2. Boddin, Dominik & Henze, Philipp, 2015. "International trade and the occupational mix in manufacturing: Evidence from german micro data," Economics Working Papers 2015-05, Christian-Albrechts-University of Kiel, Department of Economics.

    More about this item

    Keywords

    income inequality; structural change; international trade; technological change;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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