In this paper, we investigate pay structures in the private and public sectors for West Germany. ... more In this paper, we investigate pay structures in the private and public sectors for West Germany. We commence by describing some basic features of the public sector. We use micro-data from the German Socio-Economic Panel for the years 1984-93 to analyse developments and differences in public and private sector wage distributions for both males and females. We break wages down into different education groups and age-groups, and use regressions to construct conditional wage differentials. Our results differ in many aspects from findings for the UK. For instance, we find that although mean wages are higher in the public sector for both males and females, conditional wages are higher in the private sector for all education groups for males, but higher in the public sector for females.
At the interface of regional and labor economics, our paper deals with two central topics in the ... more At the interface of regional and labor economics, our paper deals with two central topics in the analysis of wage formation, the urban wage premium and the firm-size earnings differential. Choosing a cohort of workers from a large panel micro data set, we get an urban wage premium of 8 percent and a large firm premium of 11 percent.
We analyse whether wage differences between cities and rural areas in western Germany are due to ... more We analyse whether wage differences between cities and rural areas in western Germany are due to unobserved differences in regional price levels. Since regional prices are available for only 10% of the regions we use multiple imputation to generate prices for all regions. Our results show that the nominal agglomeration wage differential is 25%, whereas the real differential is 19%. If we control for the composition of the labour force and jobs, the real wage differential is 4%. If we additionally control for differences in regional building land prices the agglomeration wage differential vanishes.
In this paper, we investigate pay structures in the private and public sectors for West Germany. ... more In this paper, we investigate pay structures in the private and public sectors for West Germany. We commence by describing some basic features of the public sector. We use micro-data from the German Socio-Economic Panel for the years 1984-93 to analyse developments and differences in public and private sector wage distributions for both males and females. We break wages down into different education groups and age-groups, and use regressions to construct conditional wage differentials. Our results differ in many aspects from findings for the UK. For instance, we find that although mean wages are higher in the public sector for both males and females, conditional wages are higher in the private sector for all education groups for males, but higher in the public sector for females.
At the interface of regional and labor economics, our paper deals with two central topics in the ... more At the interface of regional and labor economics, our paper deals with two central topics in the analysis of wage formation, the urban wage premium and the firm-size earnings differential. Choosing a cohort of workers from a large panel micro data set, we get an urban wage premium of 8 percent and a large firm premium of 11 percent.
We analyse whether wage differences between cities and rural areas in western Germany are due to ... more We analyse whether wage differences between cities and rural areas in western Germany are due to unobserved differences in regional price levels. Since regional prices are available for only 10% of the regions we use multiple imputation to generate prices for all regions. Our results show that the nominal agglomeration wage differential is 25%, whereas the real differential is 19%. If we control for the composition of the labour force and jobs, the real wage differential is 4%. If we additionally control for differences in regional building land prices the agglomeration wage differential vanishes.
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Papers by Rebecca Gorman