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Ex-Ante Versus Ex-Post Wage Inequality in the German Labor Market

David Rodriguez-JusticiaHelmut HerwartzBernd Theilen

出版	SSRN, 2023
URL	http://books.google.com.hk/books?id=zyEy0AEACAAJ&hl=&source=gbs_api

註釋Differences between informative upper and lower quantiles of the wage distribution have become standard measures of wage inequality. Such realized measures of inequality are based on the implicit assumption that the underlying quantiles are deterministic. In this study we relax this assumption and complement standard ex-post wage inequalities with ex-ante measures that build upon estimated probabilities to earn wages below (above) the lower (upper) wage quantiles. We apply this adjusted measure to study wageinequalities and their evolution over time at major segments of the German labor market. Conditioning on more than 100,000 observations we find that in the new millennium standard ex-post measures of wage inequality are below their ex-ante counterparts for male and female workers in Western Germany and male workers in Eastern Germany. For instance, male workers in Western Germany have been subject to an increase of ex-ante wage inequality by 10.77 Euro which exceeds the common ex-post assessment (8.76 Euro) by about 23%.