(Un)equal through social closure - Effects of open and closed labour markets on wages in Germany

The concept of social closure is frequently used in recent debates about wage inequality. The following article shows that social closure generates not only inequality but equality, as well. Economic, segmentational and closure theoretical arguments shed light on the different relations of an employee to his employer in different labour market structures. Properties of the employee like vocational training, seniority or gender lose their impact on wages the more closed a labour market is. These hypotheses are tested with the 2006 BIBB/BAuA-Employment-Survey. Results support a deep effect of social closure in the German labour market.