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| Author: | Görzig, B. Gornig, M. Werwatz, A. |
| Title: | Firm wage differentiation in Eastern Germany. A non-parametric analysis of the wage spread |
| Journal: | Economics of transition
2008 : VOL. 16:2, p. 273-292 |
| Index terms: | transition economies pay differentials companies employees |
| Freeterms: | rent sharing decomposition non-parametric analysis Eastern Germany |
| Language: | eng |
| Abstract: | In Eastern Germany (henceforth as: E-G.), side by side to individual wage differentials, wage differentiation btw. firms has grown clearly. Compared with Western Germany (as: W-G.), however, the wage spread btw. firms is still much smaller. In this study, a non-parametric decomposition is used to analyze the difference (as: diff./diffs.) btw. the wages spread in the two parts of the country. Different economic structures in E-G. only explain a part of the diff. The greater part of the wage spread diff. btw. firms is due to the fact that diffs. of wages paid by firms of the same type in E-G. are much less than those of their counterparts in W-G. It seems that the gap in the wage variance btw. E-G. and W-G. is increasing. |
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