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workers, firms, and occupations with a focus on peer effects in wages rather than productivity. Our estimation strategy …—which links the average permanent productivity of workers’ peers to their wages— circumvents the reflection problem and accounts … find larger peer effects, about half the size of those identified in similar studies on productivity. …
Persistent link: https://www.econbiz.de/10010877670
This paper sheds light on how changes in the organization of work can help to understand increasing wage inequality. We present a theoretical model in which workers with a wider span of competence (higher level of multitasking) earn a wage premium. Since abilities and opportunities to expand the...
Persistent link: https://www.econbiz.de/10010877910
While uncertainty abounds in almost any decision on investment in schooling, it is mostly ignored in research and virtually absent in labour economics text books. This paper documents the scope for risk, discusses the tough disentanglement of heterogeneity and risk, surveys the analytical...
Persistent link: https://www.econbiz.de/10010877976
Policy debates about the balance of vocational and general education programs focus on the school-to-work transition. But with rapid technological change, gains in youth employment from vocational education may be offset by less adaptability and thus diminished employment later in life. To test...
Persistent link: https://www.econbiz.de/10009351470
This study investigates how the first childbirth affects the wage processes of highly attached women. We estimate a flexible fixed effects wage regression model extended with post-birth fixed effects by the control function approach. Register data on West Germany are used and we exploit the...
Persistent link: https://www.econbiz.de/10009645655
Immigrants in many countries have lower employment rates and lower earnings than natives. We study whether a more liberal access to citizenship improves the economic integration of immigrants. Our analysis relies on two major immigration reforms in Germany, a country with a weak record of...
Persistent link: https://www.econbiz.de/10010757727
We extend the literature on transition economies' wage structures by investigating the returns to tenure and experience. This study applies recent panel data and estimation approaches that control for hitherto neglected biases. We compare the life cycle structure in East and West German wages...
Persistent link: https://www.econbiz.de/10005766091
This paper argues that the consumption value of education is an important motivation for the educational choice. While controlling for ability, we document that individuals are willing to forego substantial future wage returns in order to acquire a particular type of higher education. We...
Persistent link: https://www.econbiz.de/10008533984
The consumption value of higher education is an important factor behind the individual’s educational choice. We provide a comprehensive literature survey, and define the consumption value as the private, intended, non-pecuniary return to higher education. We provide new empirical evidence for...
Persistent link: https://www.econbiz.de/10008534058
Taller workers earn on average higher salaries. Recent research has proposed cognitive abilities and social skills as explanations for the height-wage premium. Another possible mechanism, employer discrimination, has found little support. In this paper, we provide some evidence in favor of the...
Persistent link: https://www.econbiz.de/10005029260