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    Aspects of wage dynamics in Germany

    04 November 2014

    Wage inequality in Germany has been rising significantly over the last decades. By now, about one fifth of all employees in Germany are working in the low-wage sector. At the same time, only a fraction of the low-wage workers manage to move up to better-paid jobs. Jens Stephani investigates various research questions concerning the upward wage mobility of low-wage workers which have not been analysed previously: How big are the chances of low-wage workers to stay in higher-paid employment for a longer term after moving up? Which establishments provide above-average wage increases for low-wage workers? How important are personality traits for the chances of low-wage workers moving up? In a separate chapter, Stephani analyses the extent to which the wage levels in establishments that are covered by collective bargaining agreements are still higher than the wage levels in uncovered establishments, despite the decline in unionism in Germany over the last decade.

    IAB-Bibliothek 350


    Trade and unions: Can exporters benefit from collective bargaining?

    20 October 2014

    Unions are often stigmatized as being a source of inefficiency due to higher collective bargaining outcomes. This is in stark contrast with the descriptive evidence presented in this paper. Larger firms choose to export and are also more likely to adopt collective bargaining. We rationalize those stylized facts using a partial equilibrium model that allows us to evaluate firms' value functions under individual or collective bargaining. Exporting further decreases average production costs for large firms in the collective bargaining regime, allowing them to benefit from additional external economies of scale due to lower bargaining costs. Our findings suggest that the positive correlation between export status and collective bargaining can be explained through size.

    IAB-Discussion Paper 24/2014 


    The implementation of the German Classification of Occupations 2010 in the IAB Job Vacancy Survey

    30 September 2014

    The IAB-Job Vacancy Survey (IAB-JVS) is the only establishment survey in Germany which contains information about vacancies and new hires on an occupational level. When the new German Classification of Occupations 2010 was introduced, it became necessary to integrate it into the IAB-JVS. This report outlines the implementation of the new classification into the IAB-JVS questionnaire. It was conducted simultaneously with the renewal of the international classification, from ISCO-88 to ISCO-08.

    IAB-Forschungsbericht 10/2014



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