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New insights on earnings trends across skill groups and industries in West Germany

Author

Listed:
  • Bernd Fitzenberger
  • Claudia Kurz
Abstract
This paper provides an empirical analysis of the structure of earnings in West Germany across skill groups and industries. Our analysis is based on data from the German Socioeconomic Panel for the period 1984 to 1994. We estimate quantile regressions, both for the entire sample period and for each year separately, in order to obtain a finer picture of the earnings structure compared to conventional least squares methods. For robust standard error estimation, this study uses a block bootstrap procedure taking account of heteroskedasticity and autocorrelation in the error term. We also suggest a simple procedure to obtain a consistent estimate of inter-industry earnings variability. Our main findings are: first, pooled estimation comprising a uniform time trend is not rejected by the data, and second, the effects of human capital variables and industry dummies on earnings differ considerably across quantiles. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Bernd Fitzenberger & Claudia Kurz, 2003. "New insights on earnings trends across skill groups and industries in West Germany," Empirical Economics, Springer, vol. 28(3), pages 479-514, July.
    • Handle: RePEc:spr:empeco:v:28:y:2003:i:3:p:479-514
    DOI: 10.1007/s001810200142
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    References listed on IDEAS

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    1. Fels, Joachim & Gundlach, Erich, 1990. "More evidence on the puzzle of interindustry wage differentials: the case of West Germany," Kiel Working Papers 400, Kiel Institute for the World Economy (IfW Kiel).
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    3. Michael C. Burda, 1991. "Some New Insights on the Interindustry Wage Structure from the German Socio-Economic Panel," Discussion Papers of DIW Berlin 30, DIW Berlin, German Institute for Economic Research.
    4. Kurz, Claudia, 1995. "Die Entwicklung individueller und intersektoraler Verdienstrelationen im Zeitablauf: Eine Untersuchung für die BRD mit Daten des Sozio-ökonomischen Panels," Discussion Papers 31, University of Konstanz, Center for International Labor Economics (CILE).
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    6. Winker, Peter, 1991. "Zur Messung der Lohndifferenzierung mit Entropiemaßen," Discussion Papers, Series II 158, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
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    9. Fels, Joachim & Gundlach, Erich, 1990. "Interindustrielle Lohnunterschiede und Effizienzlohntheorie: Befunde, Hypothesen und wirtschaftspolitische Relevanz," Open Access Publications from Kiel Institute for the World Economy 1456, Kiel Institute for the World Economy (IfW Kiel).
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    More about this item

    Keywords

    Key words: Earnings Structure across Skill Groups and Industries; Quantile Regression; Block Bootstrap; JEL classification: J31; C23;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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