Wage Structure and Labor Mobility in the West German Private Sector, 1993–2000

Holger Alda, Lutz Bellmann and Hermann Gartner

in The Structure of Wages

Published by University of Chicago Press

Published in print February 2009 | ISBN: 9780226470504
Published online February 2013 | e-ISBN: 9780226470511 | DOI:
Wage Structure and Labor Mobility in the West German Private Sector, 1993–2000

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This chapter discusses the macroeconomic environment for German firms in the 1990s, referring more deeply to labor market institutions that are affecting the wage and mobility patterns. It utilizes the German linked employer–employee data of the Institute for Employment Research to administrative individual data from the employment statistics register. Firms set wages not only by occupations but also for other observed and unobserved person and firm characteristics. Wage growth rates are joined with the date of entrance by the employer. In addition, firms employ a large mixture of skills. Worker mobility increased in the second half of the 1990s, which suggests that it was driven by the business cycle and also by the trend of deregulation in the German labor market. Moreover, while the entry rates in most cases grew moderately, the exit rates become higher during the 1990s.

Keywords: wage; German labor market; German firms; mobility patterns; worker mobility; Employment Research; employment

Chapter.  17781 words.  Illustrated.

Subjects: International Economics

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