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Dissecting Between‐Plant and Within‐Plant Wage Dispersion: Evidence from Germany

Daniel Baumgarten, Gabriel Felbermayr and Sybille Lehwald

Industrial Relations: A Journal of Economy and Society, 2020, vol. 59, issue 1, 85-122

Abstract: Using rich linked employer–employee data for (West) Germany between 1996 and 2014, we conduct a decomposition analysis based on recentered influence function (RIF) regressions to analyze the relative contributions of various plant and worker characteristics to the rise in German wage dispersion. Moreover, we separately investigate the sources of between‐plant and within‐plant wage dispersion. We find that industry effects and the collective bargaining regime contribute the most to rising wage inequality. In the case of collective bargaining, both the decline in collective bargaining coverage and the increase in wage dispersion among the group of covered plants have played important roles.

Date: 2020
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Citations: View citations in EconPapers (19)

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https://doi.org/10.1111/irel.12249

Related works:
Working Paper: Dissecting Between‐Plant and Within‐Plant Wage Dispersion: Evidence from Germany (2020) Downloads
Working Paper: Dissecting Between-Plant and Within-Plant Wage Dispersion - Evidence from Germany (2018) Downloads
Working Paper: Dissecting Between-Plant and Within-Plant Wage Dispersion - Evidence From Germany (2018) Downloads
Working Paper: Dissecting between-plant and within-plant wage dispersion - Evidence from Germany (2016) Downloads
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