Konferenzbeitrag

Decomposing the German East-West wage gap

We demonstrate that almost one half of the observed wage gap between East and West Germany reflects differences in worker, establishment, and regional characteristics rather than differences in productivity at the establishment level. Regional price and establishment size differentials alone account for one quarter of the overall East-West wage gap. Differences in employees? characteristics and in productivity deliver much smaller but still statistically significant contributions. We derive these results from an Oaxaca-Blinder decomposition using unusually rich linked employer-employee data. Our findings are quite stable over the period from 1996 to 2010 and over the wage distribution.

Language
Englisch

Bibliographic citation
Series: 55th Congress of the European Regional Science Association: "World Renaissance: Changing roles for people and places", 25-28 August 2015, Lisbon, Portugal

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Subject
wage quantiles
wage differentials
Oaxaca-Blinder decomposition
RIF-regression

Event
Geistige Schöpfung
(who)
Weber, Michael
Kluge, Jan
Event
Veröffentlichung
(who)
European Regional Science Association (ERSA)
(where)
Louvain-la-Neuve
(when)
2015

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Konferenzbeitrag

Associated

  • Weber, Michael
  • Kluge, Jan
  • European Regional Science Association (ERSA)

Time of origin

  • 2015

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