This book provides empirical evidence on different aspects of wage dynamics in Germany over the last decade. A major part of the book is dealing with the wage growth and the wage mobility of low-wage workers, while a smaller part is investigating the development of the union wage premium for workers from all wage groups.
It is shown that the upward wage mobility of low-wage workers is not merely a transitory phenomenon but can lead to longer-lasting higher wage levels for these workers. However, the wage growth of low-wage workers and higher-wage workers is influenced by different sets of employer characteristics. In addition, Locus of Control and other non-cognitive skills impact on the chances of low-wage workers moving up to higher pay. Furthermore, the results indicate that although union density and collective bargaining coverage continuously declined over the last decade, a small union wage gap still exists.