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Revisiting the German wage structure

Dustmann, C.; Ludsteck, J.; Schonberg, U.; (2009) Revisiting the German wage structure. Quarterly Journal of Economics , 124 (2) pp. 843-881. 10.1162/qjec.2009.124.2.843. Green open access

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This paper shows that wage inequality in West Germany has increased over the past three decades, contrary to common perceptions. During the 1980s, the increase was concentrated at the top of the distribution; in the 1990s, it occurred at the bottom end as well. Our findings are consistent with the view that both in Germany and in the United States, technological change is responsible for the widening of the wage distribution at the top. At the bottom of the wage distribution, the increase in inequality is better explained by episodic events, such as supply shocks and changes in labor market institutions. These events happened a decade later in Germany than in the United States.

Type: Article
Title: Revisiting the German wage structure
Open access status: An open access version is available from UCL Discovery
DOI: 10.1162/qjec.2009.124.2.843
Publisher version: http://dx.doi.org/10.1162/qjec.2009.124.2.843
Language: English
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/16423
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