Wage and Income Mobility in Germany

Schäfer Holger; Schröder Christoph

Holger Schäfer / Jörg Schmidt / Christoph Schröder IW-Trends No. 1 25. March 2013 Wage and Income Mobility in Germany

Causes, Interdependences and Empirical Findings

Holger Schäfer / Jörg Schmidt / Christoph Schröder IW-Trends No. 1 25. March 2013

Wage and Income Mobility in Germany

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Causes, Interdependences and Empirical Findings

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While wage mobility in Germany has remained constant over time, income mobility has tended to decline. Nevertheless, every third advance in income level stems from a change in wage level. The overall decline in income mobility is evident in almost all types of household and also is largely independent of employment status. However, within the last few years those entering or returning to the labour market have been able to buck the downward trend. For both earnings and equivalised incomes, a high level of education leads to an increased chance of advancement and to a reduced danger of falling back. The chances of advancement are most improved by taking up gainful employment after a period without it. In this respect, there has been no substantial change since 2005. In addition the influence of wage mobility on income mobility has not significantly weakened since the middle of the 2000s.

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Holger Schäfer / Jörg Schmidt / Christoph Schröder IW-Trends No. 1 25. March 2013

Wage and Income Mobility in Germany

Download PDF

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