This paper considers the "share-altering" technical change hypothesis in a spatial general equilibrium model where individuals have different levels of skills. Building on a simple Cobb-Douglas production function, our model shows that the implementation of skill-biased technologies requires a...

We employ the German social security register data to analyze the development of wage inequality among foreigners in Germany. The data show a sharp increase of wage inequality which exceeds the size observed for natives. The decomposition methods proposed by DiNardo et al. (1996) are employed to...

This paper examines the determinants of internal migration in a context where wages tend to be rather inflexible at a regional scale so that regional labor demand shocks have a prolonged impact on employment rates. Regional income differentials, then, reflect both regional pay and employment...

While monthly wage inequality in Germany continued to increase strongly until 2010, it recently returned to the level of the year 2000. We assess the role of the national minimum wage introduced in 2015. Unconditional quantile regressions combined with difference-indifferences show significant...

Job polarisation and increasing wage inequality is observed in many rich countries, including Germany. Both phenomena are well-discussed in international literature, though a link can only be observed in the U.S. I assess the impact of job polarisation upon wage inequality in Germany by...

This paper provides evidence that labor reallocation from the manufacturing into the non-manufacturing sector causes an increase in sorting of high-skilled (low-skilled) workers into high-paying (low-paying) firms and thereby triggers a rise in wage inequality. I use data on 50% of all West...

It is generally accepted that migration will lead to an increase in income. However the question is how will income be distributed across individuals in society? If migrants have lower education levels, when compared to current urban workers, then the in ow of migrants will increase the skill...

In most industrialized countries, employment has grown predominately in jobs at the upper and lower tails of the wage distribution, while employment in the middle part of the distribution has stagnated or declined. This process of job polarization is well documented for a number of countries. We...

Using individual level data from Turkstat Household Labor Force Survey for 2005-2009 period and a variety of parametric and semi-parametric techniques, we test two hypothesis regarding formal and informal labor markets: whether there is a wage gap between formal and informal workers and whether...