Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/209592 
Year of Publication: 
2019
Series/Report no.: 
Kiel Working Paper No. 2144
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
Using rich linked employer-employee data for (West) Germany between 1996 and 2014, we conduct a decomposition analysis based on recentered influence function (RIF) regressions to analyze the relative contributions of various plant and worker characteristics to the rise in German wage dispersion. Moreover, we separately investigate the sources of between-plant and within-plant wage dispersion. We find that industry effects and the collective bargaining regime contribute the most to rising wage inequality. In the case of collective bargaining, both the decline in collective bargaining coverage and the increase in wage dispersion among the group of covered plants have played important roles.
Subjects: 
Wage inequality
Decomposition
RIF-regression
Linked employer-employee data
JEL: 
J31
J51
C21
F16
Document Type: 
Working Paper

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