Schnabel, Claus; Kohaut, Susanne; Brixy, Udo - 2004
Using a linked employer-employee data set for Germany, this paper analyses wage setting in a cohort of newly founded … and other establishments from 1997 to 2001. While theory provides alternative explanations for higher or lower wages in … smaller in eastern than in western Germany. The wage differential is shown to decline over time as the newly founded firms …