Which Ladder to Climb? Wages of workers by job, plant, and education

Christian Bayer and Moritz Kuhn

No 648, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: How much does your wage depend on what you learned, for whom you work, or what job you do? Using largely unexplored administrative data from Germany allows us to relate 80\% of wage variation to observable characteristics of jobs, firms, and workers. One wage determinant stands out: the hierarchy level of a worker, which summarizes responsibility, complexity, and independence of a job. This variable is typically absent in other data sources. The hierarchy ladder explains almost all the rise in wage-dispersion by age and half of the wage growth in life. It also is key to explain gender wage differences.

Date: 2018
New Economics Papers: this item is included in nep-eur
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Working Paper: Which Ladder to Climb? Wages of Workers by Job, Plant, and Education (2018)
Working Paper: Which Ladder to Climb? Wages of Workers by Job, Plant, and Education (2018)
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