Rising Wage Inequality in Germany: Increasing Heterogeneity and Changing Selection into Full-Time Work

Martin Biewen, Bernd Fitzenberger and Jakob de Lazzer ()
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Jakob de Lazzer: Humboldt University Berlin

No 11072, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study revisits the increase in wage inequality in Germany. Accounting for changes in various sets of observables, composition changes explain a large part of the increase in wage inequality among full-time workers. The composition effects are larger for females than for males, and increasingly heterogenous labor market histories play an important role. Furthermore, we find strong effects of education for males and strong effects of age and experience for females. Changes in industry and occupation explain fairly little. Extending the analysis to total employment confirms the basic findings, while revealing substantial negative selection into part-time work.

Keywords: wage inequality; reweighting; composition effects; Germany (search for similar items in EconPapers)
JEL-codes: J20 J31 J60 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2017-10
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (6)

Published - revised version published in: IZA Journal of Labor Economics, 2018, 7:10

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Working Paper: Rising wage inequality in Germany: Increasing heterogeneity and changing selection into full-time work (2017)
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