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Skill premiums and the supply of young workers in Germany

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dc.contributor.author Glitz, Albrecht Christian Ekkehard, 1978-
dc.contributor.author Wissmann, Daniel
dc.date.accessioned 2022-05-19T06:40:48Z
dc.date.available 2022-05-19T06:40:48Z
dc.date.issued 2021
dc.identifier.citation Glitz A, Wissmann D. Skill premiums and the supply of young workers in Germany. Labour Economics. 2021 Oct;72:102034. DOI: 10.1016/j.labeco.2021.102034
dc.identifier.issn 0927-5371
dc.identifier.uri http://hdl.handle.net/10230/53161
dc.description.abstract 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.
dc.description.sponsorship 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.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Elsevier
dc.relation.ispartof Labour Economics. 2021 Oct;72:102034. DOI: 10.1016/j.labeco.2021.102034
dc.rights © 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/).
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.title Skill premiums and the supply of young workers in Germany
dc.type info:eu-repo/semantics/article
dc.identifier.doi http://dx.doi.org/10.1016/j.labeco.2021.102034
dc.subject.keyword Cohorts
dc.subject.keyword Baby boom
dc.subject.keyword Labor supply
dc.subject.keyword Labor demand
dc.subject.keyword Skill-biased technological change
dc.subject.keyword Wage distribution
dc.subject.keyword Wage differentials
dc.rights.accessRights info:eu-repo/semantics/openAccess
dc.type.version info:eu-repo/semantics/publishedVersion

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