Regional age structure and young workers' wages

Alfred Garloff and Duncan Roth
Additional contact information
Alfred Garloff: Institute for Employment Research (IAB), Nuremberg, Germany

No 201606, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper estimates the effect that changes in the size of the youth population have on the wages of young workers. Assuming that differently aged workers are only imperfectly substitutable, economic theory predicts that individuals in larger age groups earn lower wages. We test this hypothesis for a sample of young, male, fulltime employees in Western Germany during the period 1999-2010. In contrast to other studies, functional rather than administrative spatial entities are used as they provide a more accurate measure of the youth population in an actual labour market. Based on instrumental variables estimation, we show that an increase in the youth share by one percentage point is predicted to decrease a young worker's wages by 3 %. Our results also suggest that a substantial part of this effect is due to members of larger age groups being more likely to be employed in lower-paying occupations." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Westdeutschland; Auswirkungen; Berufsanfänger; Bevölkerungsstruktur; Einkommenseffekte; erwerbstätige Männer; Integrierte Erwerbsbiografien; Jugendliche; junge Erwachsene; Lohnhöhe; Altersstruktur; 1999-2010 (search for similar items in EconPapers)
JEL-codes: J21 J31 R23 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2016
New Economics Papers: this item is included in nep-eur, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://doku.iab.de/discussionpapers/2016/dp0616.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201606

Access Statistics for this paper

More papers in IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] Contact information at EDIRC.
Bibliographic data for series maintained by IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek ().