Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/58966 
Year of Publication: 
2011
Series/Report no.: 
IZA Discussion Papers No. 6246
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This article studies the long run patterns and explanations of wage mobility as a characteristic of regional labor markets. Using German administrative data we describe wage mobility since 1975 in West and since 1992 in East Germany. Wage mobility declined substantially in East Germany in the 1990s and moderately in East and West Germany since the late 1990s. Therefore, wage mobility does not balance recent increases in cross-sectional wage inequality. We apply RIF (recentered influence function) regression based decompositions to measure the role of potential explanatory factors behind these mobility changes. Increasing job stability is an important factor associated with the East German mobility decline.
Subjects: 
wage mobility
earnings mobility
income mobility
Germany
East Germany
inequality
transition matrix
Shorrocks index
administrative data
JEL: 
J30
J31
J60
D63
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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