Using linked employer-employee data from the German Structure of Earnings Survey 2001,this paper provides a comprehensive picture of the wage structure in three wage-settingregimes prevalent in the German system of industrial relations...

The model of compensating differentials in regional labor markets was developed by Roback(1982). The model interprets regional differences in constant quality wages and rents ascompensating firms and residents for inter-regional differences in amenities. The modelassumes that the costs of...