Workplace heterogeneity and the rise of West German wage inequality

  title={Workplace heterogeneity and the rise of West German wage inequality},
  author={David Card UC Berkeley},
  • David Card UC Berkeley
  • Published 2012
We study the role of establishment-specific wage premiums in generating recent increases in West German wage inequality. Models with additive fixed effects for workers and establishments are fit in four sub-intervals spanning the period from 1985 to 2009. We show that these models provide a good approximation to the wage structure and can explain nearly all of the dramatic rise in West German wage inequality. Our estimates suggest that the increasing variability of West German wages has arisen… CONTINUE READING
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