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Cohort size effects on wages, working status, and work time

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  • Okoampah, Sarah

Abstract

This paper estimates the effects of cohort size on wages, employment and work time for workers in Germany. The empirical findings suggest that male workers with medium and high degrees of occupational specialization who were born at the peak of the baby boom earn at least 5.3% lower wages than comparable workers born during the subsequent baby bust. Highly specialized females born into large cohorts earn 2.5% lower wages than their counterparts from small cohorts. Employment effects are detected only for highly specialized males. The effects on work time are mixed and invariably larger when actual work time is considered rather than contractual work time. It is argued that the restrictive labor market institutions in place are key in shaping the response pattern across the different economic outcomes.

Suggested Citation

  • Okoampah, Sarah, 2016. "Cohort size effects on wages, working status, and work time," Ruhr Economic Papers 629, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:629
    DOI: 10.4419/86788731
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    More about this item

    Keywords

    population aging; cohort size; labor market effects; labor market institutions;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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