expensive older workers into retirement. Based on the seniority wage model developed by Lazear (1979), we discuss steep … seniority wage profiles as incentives for firms to dismiss older workers before retirement. Conditional on individual retirement … incentives, e.g., social security wealth or health status, the steepness of the wage profile will have different incentives for …

This study revisits the increase in wage inequality in Germany. Accounting for changes in various sets of observables …, composition changes explain a large part of the increase in wage inequality among full-time workers. The composition effects are …