The urban-rural wage gap in Germany

Udo Brixy, Stephan Brunow and Carsten Ochsen
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Udo Brixy: Institute for Employment Research (IAB), Nuremberg, Germany

No 202204, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "We compare real wage differences between centralized and peripheral areas and highly centralized and peripheral areas using vast information of German administrative data that contains more than 2.8 Million individuals and 660,000 firms. We provide substantial empirical evidence that most of the wage gaps can be explained by differences in endowments of individual and firm characteristics, particularly when unobserved individual and firm heterogeneity is appropriately accounted for. Our interpretation is that the selectivity of workers and firms in space explains most of the real wage gap between peripheral and (highly) centralized regions, and returns to characteristics are honoured rather equally in all regional types." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; IAB-Open-Access-Publikation; Auswirkungen; Ballungsraum; abhängig Beschäftigte; Integrierte Erwerbsbiografien; Lohnhöhe; Lohnunterschied; Peripherie; regionale Disparität; regionaler Vergleich; Standortwahl; Unternehmen; Ursache; Arbeitsplatzwahl; 2018-2018 (search for similar items in EconPapers)
JEL-codes: J31 R12 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2022-02-14
New Economics Papers: this item is included in nep-cwa, nep-geo, nep-lma and nep-ure
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Published in/as: später (möglw. abweichend) erschienen in:, doi:10.1016/j.apgeog.2022.102647

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https://doi.org/10.48720/IAB.DP.2204

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202204

DOI: 10.48720/IAB.DP.2204

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