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

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  • Fitzenberger, Bernd
  • Kurz, Claudia

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 one-step 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.

Suggested Citation

  • Fitzenberger, Bernd & Kurz, Claudia, 1997. "New insights on earnings trends across skill groups and industries in West Germany," Discussion Papers 38, University of Konstanz, Center for International Labor Economics (CILE).
    • Handle: RePEc:zbw:koncil:38
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    References listed on IDEAS

    as
    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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    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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    More about this item

    Keywords

    Earnings Structure across Skill Groups and Industries; Quantile Regression; Block Bootstrap;
    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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