Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230007
Authors: 
Gürtzgen, Nicole
Diegmann (né Nolte), André
Year of Publication: 
2020
Citation: 
[Journal:] Economics of Transition and Institutional Change [ISSN:] 2577-6983 [Volume:] 28 [Issue:] 3 [Pages:] 413-440
Abstract: 
Using German administrative data, we study across‐regime low‐pay persistence in the context of an economic transformation process. We first show that individuals' initial allocation to the post‐unification low‐wage sector was close to random in terms of market‐regime unobservables. Consistent with a weak connection between individuals' true productivity and their pre‐unification low‐wage status, the extent of across‐regime state dependence is found to be small and appears to vanish over time. For males, across‐regime state dependence is most pronounced among the medium‐ and high‐skilled, suggesting the depreciation of human capital as an explanation.
Subjects: 
economic transition
human capital
low‐pay dynamics
state dependence
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Article
Document Version: 
Published Version

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