Skill premiums and the supply of young workers in Germany

In this paper, we study the development and underlying drivers of skill premiums in Germany between 1980 and 2008. We show that the significant increase in the medium-to-low skill premium since the late 1980s was almost exclusively concentrated among workers aged 30 or below. Using a nested CES prod...

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Detalles Bibliográficos
Autores: Glitz, Albrecht Christian Ekkehard, 1978-, Wissmann, Daniel
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2021
País:España
Institución:Universitat Pompeu Fabra
Repositorio:Repositorio Digital de la UPF
OAI Identifier:oai:repositori.upf.edu:10230/53161
Acceso en línea:http://hdl.handle.net/10230/53161
http://dx.doi.org/10.1016/j.labeco.2021.102034
Access Level:acceso abierto
Palabra clave:Cohorts
Baby boom
Labor supply
Labor demand
Skill-biased technological change
Wage distribution
Wage differentials
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spelling Skill premiums and the supply of young workers in GermanyGlitz, Albrecht Christian Ekkehard, 1978-Wissmann, DanielCohortsBaby boomLabor supplyLabor demandSkill-biased technological changeWage distributionWage differentialsIn this paper, we study the development and underlying drivers of skill premiums in Germany between 1980 and 2008. We show that the significant increase in the medium-to-low skill premium since the late 1980s was almost exclusively concentrated among workers aged 30 or below. Using a nested CES production function framework which allows for imperfect substitutability between young and old workers, we show that changes in relative labor supplies can explain these patterns very well. A cohort-level analysis reveals that distinct secular changes in the educational attainment of the native population are the primary source of the declining relative supply of medium-skilled workers in Germany. Low-skilled immigration, in contrast, only plays a secondary role in explaining the rising lower-end wage inequality in Germany over recent decades.Albrecht Glitz gratefully acknowledges financial support from the Spanish Ministry of Economy and Competitiveness (through the Severo Ochoa Programme for Centres of Excellence in R&D, SEV-2015-0563) and the Ministry of Science, Innovation and Universities (through the National Programme for the Promotion of Talent and Its Employability, the Ramón y Cajal grants, MINECO-RYC-2015-18806, and Project No. ECO2017-83668-R (AEI/FEDER, UE)). He also thanks the German Research Foundation (DFG) for funding his Heisenberg Fellowship (GL 811/1-1) and Alexandra Spitz-Oener for hosting him at Humboldt University Berlin. Daniel Wissmann acknowledges funding through the International Doctoral Program “Evidence-Based Economics” of the Elite Network of Bavaria and the LMU Forschungsfonds. This study uses the factually anonymous Sample of Integrated Labour Market Biographies (version 1975-2010). Data access was provided via a Scientific Use File supplied by the Research Data Centre (FDZ) of the German Federal Employment Agency (BA) at the Institute for Employment Research (IAB), Project No. 101003.Elsevier202220222021info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfhttp://hdl.handle.net/10230/53161http://dx.doi.org/10.1016/j.labeco.2021.102034reponame:Repositorio Digital de la UPFinstname:Universitat Pompeu FabraInglésLabour Economics. 2021 Oct;72:102034© 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).http://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:repositori.upf.edu:10230/531612026-06-12T07:21:37Z
dc.title.none.fl_str_mv Skill premiums and the supply of young workers in Germany
title Skill premiums and the supply of young workers in Germany
spellingShingle Skill premiums and the supply of young workers in Germany
Glitz, Albrecht Christian Ekkehard, 1978-
Cohorts
Baby boom
Labor supply
Labor demand
Skill-biased technological change
Wage distribution
Wage differentials
title_short Skill premiums and the supply of young workers in Germany
title_full Skill premiums and the supply of young workers in Germany
title_fullStr Skill premiums and the supply of young workers in Germany
title_full_unstemmed Skill premiums and the supply of young workers in Germany
title_sort Skill premiums and the supply of young workers in Germany
dc.creator.none.fl_str_mv Glitz, Albrecht Christian Ekkehard, 1978-
Wissmann, Daniel
author Glitz, Albrecht Christian Ekkehard, 1978-
author_facet Glitz, Albrecht Christian Ekkehard, 1978-
Wissmann, Daniel
author_role author
author2 Wissmann, Daniel
author2_role author
dc.subject.none.fl_str_mv Cohorts
Baby boom
Labor supply
Labor demand
Skill-biased technological change
Wage distribution
Wage differentials
topic Cohorts
Baby boom
Labor supply
Labor demand
Skill-biased technological change
Wage distribution
Wage differentials
description In this paper, we study the development and underlying drivers of skill premiums in Germany between 1980 and 2008. We show that the significant increase in the medium-to-low skill premium since the late 1980s was almost exclusively concentrated among workers aged 30 or below. Using a nested CES production function framework which allows for imperfect substitutability between young and old workers, we show that changes in relative labor supplies can explain these patterns very well. A cohort-level analysis reveals that distinct secular changes in the educational attainment of the native population are the primary source of the declining relative supply of medium-skilled workers in Germany. Low-skilled immigration, in contrast, only plays a secondary role in explaining the rising lower-end wage inequality in Germany over recent decades.
publishDate 2021
dc.date.none.fl_str_mv 2021
2022
2022
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10230/53161
http://dx.doi.org/10.1016/j.labeco.2021.102034
url http://hdl.handle.net/10230/53161
http://dx.doi.org/10.1016/j.labeco.2021.102034
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Labour Economics. 2021 Oct;72:102034
dc.rights.none.fl_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositorio Digital de la UPF
instname:Universitat Pompeu Fabra
instname_str Universitat Pompeu Fabra
reponame_str Repositorio Digital de la UPF
collection Repositorio Digital de la UPF
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15.811543

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