Guertzgen, Nicole and Diegmann (né Nolte), André (2020) Does low-pay persist across different regimes? Evidence from German Unification. ECONOMICS OF TRANSITION AND INSTITUTIONAL CHANGE, 28 (3). pp. 413-440. ISSN 2577-6975, 2577-6983
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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.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | PANEL-DATA MODELS; WAGE; TRANSITION; DYNAMICS; UNEMPLOYMENT; MOBILITY; MARKETS; STATE; economic transition; human capital; low-pay dynamics; state dependence |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Arbeitsmarktforschung (Professor Dr. Nicole Gürtzgen) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 19 Mar 2021 12:41 |
| Last Modified: | 19 Mar 2021 12:41 |
| URI: | https://pred.uni-regensburg.de/id/eprint/44323 |
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