exporting on firms' labor demand. Using rich, administrative linked employer-employee panel data from Germany, we explicitly …

We provide a comprehensive analysis of income inequality and income dynamics for Germany over the last two decades … distribution of annual earnings in Germany. We find that cross‐sectional inequality rose until 2009 for men and women. After the …

between preferences and wages is key. To overcome this restriction, we propose a flexible estimation strategy that nests … elasticities derived from microeconometric models can also be explained by modeling assumptions with respect to wages. Specifically … very sensitive to the treatment of wages. In particular, the often-made but highly restrictive independence assumption …

between preferences and wages is key. To overcome this restriction, we propose a flexible estimation strategy that nests … elasticities derived from microeconometric models can also be explained by modeling assumptions with respect to wages. Specifically … very sensitive to the treatment of wages. In particular, the often-made but highly restrictive independence assumption …

estimates are extremely sensitive to the treatment of the wages a neglected dimension so far. We show that, e.g., the choice … between predicting wages for the full sample instead of using predicted wages only for non-workers two methods frequently used … increases labor supply elasticities by up to 100 percent. As a consequence, we propose a new estimation strategy which overcomes …

by comparing Germany and the US based on harmonized micro data. We find significant and robust differences between lower …