Seniority in Germany: New evidence on returns to tenure for male full-time workers

"This study uses recent data taken from the German Socio-Economic Panel (2002-2006) to evaluate the extent of and heterogeneity in returns to tenure for men in eastern and western Germany, employed in both the private and the public sector. We find significantly different wage patterns in eastern and western Germany as well as between the private and public sectors. Irrespective of the particular subsample, the application of the Altonji-Shakotko estimation approach yields minute and insignificant returns to tenure and more substantial returns to experience. The profile of the eastern German wage structure is surprisingly flat: after the first ten years of experience - and in contrast to the situation in western Germany - there appear to be no returns to additional general human capital." (Author's abstract, IAB-Doku) ((en)) Additional Information Kurzfassung (deutsch) Executive summary (English)