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- W1569664594 abstract "This study analyses the individual determinants of log real wage changes for east and west German workers over the period 1990/91 to 1995/96 using data from the German Socioeconomic Panel. Parameters are estimated by median regression. I find wage changes in the transition economy to vary less with experience than in the non-transition country. This is in line with human capital theory: The transition shock implies that east German workers adapt to new production techniques. Hence, inexperienced and experienced workers invest in on-the-job training in a more similar way than in a non-transition country. Job mobility theories like matching and on-the-job search theory imply for a non-transition country that voluntary job changes are associated with wage gains, which decrease in experience. Involuntary job changes instead should rather be associated with wage losses, which in absolute terms rise with experience. The reason is that the higher a workers experience the more likely he/she works in a relatively high quality job match. But in turn the less likely the wage rise due to job change. But for a transition country this is not necessarily the case. A high quality job match under socialism is unlikely to remain a high quality job match during the period of the transition shock. Hence wage changes associated with job changes presumably do not vary with experience. At least for involuntary job changes, the evidence is partly in line with these hypotheses. I also estimated causal eects of job mobility on wages by comparing wage changes of this period movers with wage changes of next period movers. The results suggest that voluntary job changes raise real wages of both east and west Germans, while involuntary changes tend to lower real hourly wages." @default.
- W1569664594 created "2016-06-24" @default.
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- W1569664594 date "2005-01-01" @default.
- W1569664594 modified "2023-09-27" @default.
- W1569664594 title "How does experience and job mobility determine wage gain in a transition and a non-transition economy? The case of east and west Germany. ⁄" @default.
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