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The Effect of Regional Competition and Company-sponsored Training on the Productivity-Wage Wedge

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  • Hinz, Tina
  • Mohrenweiser, Jens

Abstract

The new training literature argues that imperfect labour market competition drives a wedge between productivity and wage increases in skills. We apply recent advancements in the estimation of production and wage functions to show a compressed wage structure in Germany. We also use regional and industry variation in labour market competitiveness and show that there is a premium on productivity and wages,but the productivity-wage wedge does not diminish in labour markets that are more competitive.

Suggested Citation

  • Hinz, Tina & Mohrenweiser, Jens, 2017. "The Effect of Regional Competition and Company-sponsored Training on the Productivity-Wage Wedge," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168292, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc17:168292
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    References listed on IDEAS

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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