The validity of family background variables instrumenting education in income regressions has been much criticized. In this paper, we use data of the 2004 German Socio-Economic Panel and Bayesian analysis in order to analyze to what degree violations of the strong validity assumption affect the...

Using administrative linked employer-employee data from Germany, this paper analyses the real wage growth and career patterns of full-time employed low-wage workers between 2001 and 2006. Multivariate models accounting for sample selection demonstrate the relevance of individual characteristics...

It is a well-known fact that temporary agency workers have to accept high pay penalties. However, remarkably little is known about the remuneration of workers who are frequently employed in this sector or who are employed for a substantial length of time. Based on a rich administrative data set,...