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Occupational Licensing and the Wage Structure in Germany

Haupt, Andreas; Witte, Nils

In order to work in licensed occupations, employees need permission from the state. For Germany, it remains unanswered why occupations become licensed and how licensing affects the wage structure. The article describes the institutional embeddedness of licensing in the German labor market. These institutions create barriers to entry and regulate prices of occupational tasks. By accounting for licensing and its accompanying institutions, the article shows licensing to generate a safety net effect rather than mere monopoly rents. Wage inequality is reduced as a consequence. Results from conditional and unconditional quantile regressions based on the BIBB-BAuA Employment Survey 2012 strongly support that view.

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Volltext §
DOI: 10.5445/IR/1000053799
Cover der Publikation
Zugehörige Institution(en) am KIT Institut für Soziologie, Medien- und Kulturwissenschaft (ISMK)
Publikationstyp Forschungsbericht/Preprint
Publikationsjahr 2016
Sprache Englisch
Identifikator ISSN: 2363-8079
KITopen-ID: 1000053799
Verlag KIT, Karlsruhe
Umfang 30 S.
Serie Working Paper Series in Sociology ; 4
Schlagwörter licensing, economic inequality, labor markets, un/conditional quantile regression
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