Intragenerational wage mobility and social disadvantage: A comparative study of West Germany and the United States

Abstract

This article studies wage mobility during the early career in West Germany and the United States. We examine the extent of intragenerational wage fluctuations, whether they structure into upward mobility trends or remain volatile variations, and whether mobility aligns with classical stratification dimensions (gender, social origin, and education). We highlight three main findings. First, intragenerational wage fluctuations are stronger in the United States than in West Germany. Second, wage fluctuations translate into steeper trends of upward mobility, lower trend heterogeneity, and lower year-to-year volatility in West Germany than in the United States. Last, there is persistent intragenerational wage inequality by gender, social origin, and education but no striking differences between the patterns in the two countries. These results point toward the idea that higher wage fluctuations in the United States do not reflect opportunities for upward mobility but, rather, uncertainty around the prospects of wage progression.