Labour market effects of wage inequality and skill-biased technical change in Germany

Christian Hutter and Enzo Weber
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Christian Hutter: Institute for Employment Research (IAB), Nuremberg, Germany

No 201705, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper analyses the relationship between wage inequality and labour market development. Relevant economic theories are ambiguous, just as public debates. We measure the effects of wage inequality, skill-biased and skill-neutral technology on hours worked, productivity and wages in a novel structural vector error correction framework identified by non-recursive long-run restrictions. Results show that skill-biased technology shocks reduce hours worked but increase inequality, productivity and wages. Structural inequality shocks also have a negative impact on hours worked, but additionally reduce productivity. We find relevant effects of inequality both above and below the median wage." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Auswirkungen; Beschäftigungseffekte; Einkommenseffekte; Integrierte Erwerbsbiografien; Lohnentwicklung; Lohnkosten; Lohnunterschied; Produktivitätseffekte; Qualifikationsanforderungen; technischer Wandel; Arbeitsvolumen; 1975-2014 (search for similar items in EconPapers)
JEL-codes: C32 I24 J24 J31 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2017
New Economics Papers: this item is included in nep-lma
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201705

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