Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56761
Authors: 
Fedorets, Alexandra
Year of Publication: 
2011
Series/Report no.: 
SFB 649 discussion paper 2011-075
Abstract: 
This paper estimates wage losses arising due to changes in the structure of demand for occupations. The data on occupational changes made for the sake of adjustment to the changes in the demand structure come from the German reunification of 1990. Endogenous occupational changes are instrumented by the post-reunification demand properties of the occupation of the apprenticeship completed in the GDR. The IV computation reveals a negative wage effect of nearly 35 log points in 1991/92. This effect is persistent over time: after almost 10 years after reunification the negative wage effect associated with occupational changes due to the relocation of individual human capital across occupations is more than 20 log points.
Subjects: 
human capital
wage premium
occupational change
natural experiment
JEL: 
J24
J62
I21
P21
Document Type: 
Working Paper

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