Does it matter where you work? Employer characteristics and the wage growth of low-wage workers and higher-wage workers

Arbeitspapier

Using rich German linked employer-employee data and endogenous switching regression models, I show that large firms and firms with a high export share or a low proportion of fixed-term workers provide higher wage growth for low-wage workers. While having many low-paid co-workers dampens the wage growth of both lowwage workers and higher-wage workers, there are also employers who provide higher wage growth only for higher-wage workers. The results indicate a certain degree of labour market segmentation that is a) important for the wage mobility of individual workers and b) relevant in the context of polarisation and rising wage inequality.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IAB-Discussion Paper ; No. 4/2013

Classification and Topics

• Classification: Wirtschaft ; Wages, Compensation, and Labor Costs: General ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General
• Subject: Wage mobility ; low-wage employment ; endogenous switching regression model ; Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stephani, Jens
• Event: Veröffentlichung
• (who): Institut für Arbeitsmarkt- und Berufsforschung (IAB)
• (where): Nürnberg
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/84965
• Last update: 10.03.2025, 11:43 AM CET