"Using rich German linked employer-employee data and endogenous switching regression models, I show that large firms and firms with a high export share or a low proportion of fixed-term workers provide higher wage growth for low-wage workers. While having many low-paid co-workers dampens the wage growth of both low-wage workers and higher-wage workers, there are also employers who provide higher wage growth only for higher-wage workers. The results indicate a certain degree of labour market segmentation that is a) important for the wage mobility of individual workers and b) relevant in the context of polarisation and rising wage inequality."

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