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Labour market effects of wage inequality and skill-biased technical change in Germany

Author

Listed:
  • Hutter, Christian

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Weber, Enzo

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Regensburg)

Abstract

"This paper analyses the relationship between wage inequality and labour market development. Relevant economic theories are ambiguous, just as public debates. We measure the effects of wage inequality, skill-biased and skill-neutral technology on hours worked, productivity and wages in a novel structural vector error correction framework identified by non-recursive long-run restrictions. Results show that skill-biased technology shocks reduce hours worked but increase inequality, productivity and wages. Structural inequality shocks also have a negative impact on hours worked, but additionally reduce productivity. We find relevant effects of inequality both above and below the median wage." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Hutter, Christian & Weber, Enzo, 2017. "Labour market effects of wage inequality and skill-biased technical change in Germany," IAB-Discussion Paper 201705, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201705
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    Citations

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    Cited by:

    1. Groiss, Martin, 2024. "Equalizing Monetary Policy - the Earnings Heterogeneity Channel in Action," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302346, Verein für Socialpolitik / German Economic Association.
    2. Alexander Herzog-Stein & Birgit Friedrich & Werner Sesselmeier & Ulrike Stein, 2017. "Wachstum und Produktivität im Gegenwind," IMK Report 124-2017, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. Carbonero, Francesco & Offermanns, Christian J. & Weber, Enzo, 2017. "The fall of the labour income share: the role of technological change and imperfect labour markets," IAB-Discussion Paper 201728, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Kruppe, Thomas & Trepesch, Merlind, 2017. "Weiterbildungsbeteiligung in Deutschland : Auswertungen mit den Daten der Erwachsenenbefragung des Nationalen Bildungspanels "Bildung im Erwachsenenalter und lebenslanges Lernen"," IAB-Discussion Paper 201716, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Francesco Carbonero & Christian Offermanns & Enzo Weber, 2017. "The Trend in Labour Income Share: the Role of Technological Change and Imperfect Labour Markets," Working Papers 173, Bavarian Graduate Program in Economics (BGPE).

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Auswirkungen ; Beschäftigungseffekte ; Einkommenseffekte ; Integrierte Erwerbsbiografien ; Lohnentwicklung ; Lohnkosten ; Lohnunterschied ; Produktivitätseffekte ; Qualifikationsanforderungen ; technischer Wandel ; Arbeitsvolumen ; 1975-2014;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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