We investigate wage differences between newly hired and incumbent employees. We show in a formal model that when employees care for wages as well as match-specific utility, incumbents earn less than new recruits if and only if firm-specific human capital is not too important. The existence and...

The report shows what differentiates the individuals in the survey who entered work over a twelve month period from those who remained out of work over the course of a year. It examines how the distribution of hourly wages earned by new entrants into jobs differs from the distribution of wages...

We address the concerns about rising inequality in the German labour market after the implementation of the Hartz reforms between 2003 and 2005. We focus on the quality of new jobs started between 1998 and 2010 in West Germany in terms of job stability and level of earnings. Using social...