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18. Juli 2012

Cluster-Seminar Öffentliche Finanzen und Lebenslagen

Wage Mobility in East and West Germany


18. Juli 2012


DIW Berlin im Quartier 110
Room 5.2.010
Mohrenstraße 58
10117 Berlin


Prof. Dr. Regina T. Riphahn, LMU München, Daniel D. Schnitzlein
This article studies long run patterns and explanations of wage mobility as a characteristic of regional labor markets. Using German administrative data we describe wage mobility since 1975 in West and since 1992 in East Germany. Wage mobility declined substantially in East Germany in the 1990s and moderately in East and West Germany since the late 1990s. Therefore, wage mobility does not balance recent increases in cross-sectional wage inequality. We apply RIF regression based decompositions to measure the role of factors associated with these mobility changes. Increasing job stability plays an important role in the East German mobility decline.
Link: http://ftp.iza.org/dp6246.pdf