Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Labor Economics II No. F04-V3
The new training literature argues that imperfect labour market competition drives a wedge between productivity and wage increases in skills. We apply recent advancements in the estimation of production and wage functions to show a compressed wage structure in Germany. We also use regional and industry variation in labour market competitiveness and show that there is a premium on productivity and wages,but the productivity-wage wedge does not diminish in labour markets that are more competitive.