Economic Outlook
Joint Economic Forecast Spring 2026 Energy Price Shock Dampens Recovery – Inflation Rises April 1, 2026 Although the leading economic research institutes consider the German…
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Halle Institute for Economic Research
Energy Price Shock Dampens Recovery – Inflation Rises Although the leading economic research institutes, in their joint spring forecast, consider the German economy to be in a…
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The Contribution of Employer Changes to Aggregate Wage Mobility
Nils Torben Hollandt, Steffen Müller
Oxford Economic Papers,
Vol. 77 (2),
2025
Abstract
Wage mobility reduces the persistence of wage inequality. We develop a framework to quantify the contribution of employer-to-employer movers to aggregate wage mobility. Using three decades of German social security data, we find that inequality increased while aggregate wage mobility decreased. Employer-to-employer movers exhibit higher wage mobility, mainly due to changes in employer wage premia at job change. The massive structural changes following German unification temporarily led to a high number of movers, which in turn boosted aggregate wage mobility. Wage mobility is much lower at the bottom of the wage distribution, and the decline in aggregate wage mobility since the 1980s is concentrated there. The overall decline can be mostly attributed to a reduction in wage mobility per mover, which is due to a compositional shift toward lower-wage movers.
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Research Articles
Research Articles Explore cutting-edge research based on CompNet’s micro-aggregated firm-level data and related analytical tools. These articles cover empirical and theoretical…
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Reports
Reports Flagship Firm Productivity Report 2023 Introducing the release of the 2023 Flagship Firm Productivity Report , providing critical insights into the short-term impact of…
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At a Glance
IWH at a Glance The Halle Institute for Economic Research (IWH) – Member of the Leibniz Association was founded on January 1, 1992. It is a member of the Leibniz Association. It…
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Internships
Internship at Halle Institute for Economic Research (IWH) Interested in gaining an authentic insight in the interesting daily business and the variable tasks of an institute for…
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Alumni
IWH Alumni The IWH maintains contact with its former employees worldwide. We involve our alumni in our work and keep them informed, for example, with a newsletter. We also plan…
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East Germany
The Nasty Gap 30 years after unification: Why East Germany is still 20% poorer than the West Dossier In a nutshell The East German economic convergence process is hardly…
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Diversity
Diversity We have signed the Diversity Charter and actively commit to a culture of diversity. IWH stands for a working environment that is free of biases and barrier-free: A…
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