We design an overlapping generations model of the labor market. Experienced workers bear costs of switching employers, whereas the segment for junior workers is horizontally differentiated. The literature typically explains wage seniority premia with reference to productivity gains generated by...

This paper investigates the increase in wage inequality, the decline in collective bargaining, and the development of the gender wage gap in West Germany between 2001 and 2006. Based on detailed linked employer-employee data, we show that wage inequality is rising strongly ﾖ driven not only by...

This paper investigates the increase in wage inequality, the decline in collective bargaining, and the development of the gender wage gap in West Germany between 2001 and 2006. Based on detailed linked employer-employee data, we show that wage inequality is rising strongly – driven not only by...