Template-Type: ReDIF-Paper 1.0

Author-Name: Robert Orlowski
Author-X-Name-First: Robert
Author-X-Name-Last: Orlowski

Author-Name: Regina T. Riphahn
Author-X-Name-First: Regina T.
Author-X-Name-Last: Riphahn

Title: Seniority in Germany: New Evidence on Returns to Tenure for Male Full-time Workers

Abstract: This study uses recent data taken from the German Socioeconomic Panel (2002-2006) to
evaluate the extent of and heterogeneity in returns to tenure for men in East and West
Germany, employed in both the private and the public sector. We find significantly different
wage patterns in East- and West Germany as well as between the private and public sector.
Independent 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 East German wage structure is surprisingly flat: after the first
ten years of experience - and in contrast to the situation in West Germany - there appear to be
no returns to additional general human capital.
Length:  31 pages
Creation-Date:  2007-12
File-URL: http://www.bgpe.de/texte/DP/036_orlowski_riphahn.pdf
File-Format: Application/pdf
File-Function: First version, 2007
Number: 036
Classification-JEL: J31, J24
Keywords: returns to tenure, seniority, earnings patterns, private and public sector
Handle: RePEc:bav:wpaper:036_orlowski_riphahn