"Using representative linked employer-employee data of the German Federal Employment Agency, this paper analyzes to which extent full-time employees who earned low wages (less than two-thirds of the median wage) in 1998/99 were able to earn higher wages in the following years, and which factors...

"Using representative linked employer-employee data of the German Federal Employment Agency, this paper analyzes to which extent full-time employees who earned low wages (less than two-thirds of the median wage) in 1998/99 were able to earn higher wages in the following years, and which factors...

"Using a representative establishment dataset, this paper is the first to analyze the incidence of wage posting and wage bargaining in the matching process from the employer's side. We show that both modes of wage determination coexist in the German labor market, with about two-thirds of hirings...