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Education and Wage Inequality in Germany: A Review of the Empirical Literature

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  • Weber, Andrea Maria
  • Ammermüller, Andreas

Abstract

This paper reviews the current state of knowledge on the link between education and wage inequality in Germany. The wage inequality is characterized by its stability, although a more detailed analysis reveals structural differences, especially between East and West Germany. Both the between and within educational levels wage inequality changed little over time, while there are some tendencies of a converging distribution of education. A need for further research is identified in the effects of education on wage inequality in separate cohorts as well as the direct links between the two distributions in Germany.

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  • Weber, Andrea Maria & Ammermüller, Andreas, 2003. "Education and Wage Inequality in Germany: A Review of the Empirical Literature," ZEW Discussion Papers 03-29, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:1023
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    References listed on IDEAS

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    1. Eswar S. Prasad, 2004. "The Unbearable Stability of the German Wage Structure: Evidence and Interpretation," IMF Staff Papers, Palgrave Macmillan, vol. 51(2), pages 354-385.
    2. Pedro Telhado Pereira & Pedro Silva Martins, 2000. "Does education reduce wage inequality? Quantile regressions evidence from fifteen European countries," Nova SBE Working Paper Series wp379, Universidade Nova de Lisboa, Nova School of Business and Economics.
    3. Jennifer Hunt, 2001. "Post-Unification Wage Growth in East Germany," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 190-195, February.
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    2. Stefan Gravemeyer & Thomas Gries, 2010. "Income and disparity in Germany and China," Working Papers CIE 30, Paderborn University, CIE Center for International Economics.
    3. Ammermüller, Andreas & Weber, Andrea M. & Westerheide, Peter, 2005. "Die Entwicklung und Verteilung des Vermögens privater Haushalte unter besonderer Berücksichtigung des Produktivvermögens (Aktenzeichen 534 - 52061 -17)," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 111442, February.
    4. Mathias Sommer, 2008. "Understanding the trends in income, consumption and wealth inequality and how important are life-cycle effects?," MEA discussion paper series 08160, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    5. Sommer, Mathias, 2008. "Understanding the trends in income, consumption and wealth inequality and how important are life-cycle effects?," Papers 08-12, Sonderforschungsbreich 504.
    6. Bellmann, Lutz & Gartner, Hermann, 2003. "Fakten zur Entwicklung der qualifikatorischen und sektoralen Lohnstruktur (Facts on the development of the qualification-related and sectoral wage structure)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 493-508.

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