The name is absent



Table 5: Wagea Dynamics using Secondb Quasi-Difference

Specificationc 1

Low

Rank L

Middle

Rank M

Upper

Rank U

EXecutive

Rank EX

Ranks

dL

dM

dU

dEX

Skill*Ranks

-

0.064*
(0.035)

0.189***
(0.054)

0.241***
(0.084)

Unmeasured

cL

cM

cU

cEX

1

0.914***
(0.099)

1.228***
(0.166)

1.310***
(0.230)

Measured

βL

βM

βU

βEX

1.146***

1.356***

1.206***

1.302***

Ratio
b0

(0.214)
b0
1.049***
(0.016)

(0.175)

(0.250)

(0.311)

Testsc for Equality

Joint

M=L

U=M

EX=U

of Slopes cj

5.89 (0.11)

0.75 (0.39)

5.10 (0.02)

0.31 (0.57)

of Slopes βj

of Ratio b0 = 1

Overidentification Test

5.48 (0.14)

9.39 (0.00)

62.42 (0.18)

4.56 (0.03)

0.80 (0.37)

0.35 (0.55)

Comparative Advantage and Learning

Specificationc 2

Low

Rank L

Middle

Rank M

Upper

Rank U

EXecutive

Rank EX

Ranks

dL

dM

dU

dEX

Skill*Ranks

-

0.184***
(0.067)

0.301**
(0.128)

0.438***
(0.158)

Unobserved

cL

cM

cU

cEX

1

1.414***
(0.244)

2.104***
(0.367)

2.08***
(0.477)

Measured

βL

βM

βU

βEX

1.587***

1.450***

1.117***

0.998*

Ratio
b0

(0.267)
b0
1.000***
(0.184)

(0.259)

(0.309)

(0.446)

Testsc for Equality

Joint

M=L

U=M

EX=U

of Slopes cj

11.73 (0.00)

2.88 (0.08)

11.29 (0.00)

0.01(0.93)

of Slopes βj

of Ratio b0 = 1

Overidentification Test

2.78 (0.42)

20.00 (0.99)

57.25 (0.23)

0.60 (0.43)

1.93 (0.16)

0.12 (0.72)

a-Dependent variable is wage in level in thousands of marks. Also included are dummies
for the type of contract, large firm size, public sector, occupations, industries and years.
b-Estimation using variables in t and t - 2 in the wage equation.

C-Estimation of Ω using the residuals from NLIV with Ω = I in a first step. Number of
observations is 7775 in the comparative advantage case and 6904 in the learning case.
The instruments for previous wage in the comparative advantage case include all the rank
interactions between t and t-2 as well skills interacted with rank. In the learning case,
current rank affiliation is instrumented using rank affiliation in t-3.

33



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