Unskilled labor and wage determination: an empirical investigation for Germany |
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Authors: | Winkelmann R |
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Institution: | (1) Department of Economics, University of Canterbury, P.B. 4800, Christchurch, New Zealand, NZ |
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Abstract: | This article contributes to the ongoing debate on native wage impacts of immigration. I propose a mobile-fixed factor distinction
as a framework in which to think about the differential impact of immigration on various labor market groups. Skilled workers
are treated as a fixed factor of production since the strong reliance on skill certification in Germany inhibits mobility
and shelters from competition. Unskilled workers, in contrast, receive competitive wages. Using data from the German Socio-Economic
Panel for 1984–1989 I estimate panel wage regressions for groups of workers separated by skill certification. I find that
university graduates‘ wages increase, and the wages of workers without postsecondary degree decrease, as the industry share
of unskilled workers increases. The effect for apprentices is ambiguous.
JEL classification: F22, J31
Received January 19, 1995 / Accepted August 14, 1995 |
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Keywords: | : Immigration specific factor model rents |
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