The Role of Hours Changes for the Increase in German Earnings Inequality-Reference-Cited by-同舟云学术

The Role of Hours Changes for the Increase in German Earnings Inequality

Published:2019-03-20 Issue:2 Volume:239 Page:277-304
ISSN:2366-049X
Container-title:Jahrbücher für Nationalökonomie und Statistik
language:en
Short-container-title:

Author:

Biewen Martin¹²,Plötze Daniela³

Affiliation:

1. University of Tübingen , LEAD Tübingen , IZA Bonn

2. School of Business and Economics , University of Tübingen , Mohlstr. 36, 72074 Tübingen , Germany

3. Wüstenrot & Württembergische and University of Tübingen , Tübingen , Germany

Abstract

Abstract Using data from the German Structure of Earnings Survey (GSES), this paper studies the role of changes in working hours for the increase in male and female earnings inequality between 2001 and 2010. We provide both classic decompositions of the variance of log earnings into the variances of hours, wage rates and their covariance, and decompositions based on reweighting the conditional hours distribution. Depending on the inequality measure considered, our results suggest that between 10 and 30% of the increase in male earnings inequality and 37 to 47% of the increase in female earnings inequality can be explained by changes in working hours. In addition, a large part of the inequality increase can be accounted for by changes in the composition of person and firm characteristics.

Publisher

Walter de Gruyter GmbH

Subject

Economics and Econometrics,Social Sciences (miscellaneous),General Business, Management and Accounting

Link

https://www.degruyter.com/document/doi/10.1515/jbnst-2018-0013/pdf

Reference19 articles.

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2. Biewen, M., M. Ungerer, M. Löffler (2017a), Why Did Income Inequality in Germany not Increase Further after 2005? Forthcoming in: German Economic Review.

3. Biewen, M., B. Fitzenberger, J. DeLazzer (2017b), Rising Wage Inequality in Germany: Increasing Heterogeneity and Changing Selection into Full-Time Work, IZA Discussion Paper No. 11072. Bonn.

4. Blau, F.D., L.M. Kahn (2011), Inequality and Earnings Distribution. pp. 177–203 in: W. Salverda, B. Nolan, T. Smeeding (eds.), The Oxford Handbook of Economic Inequality. Oxford: Oxford University Press.

5. Burtless, G. (1990), A Future of Lousy Jobs: The Changing Structure of U.S. Wages. Washington D.C: Brookings Institution Press.

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