We compare male and female upward labor income mobility in Germany and the United
States using the GSOEP-PSID Cross National Equivalent File. Our main interest is to test
whether a glass ceiling exists for women. The standard glass ceiling hypothesis highlights the
belief that the playing field is level for women and men in the labor market up to a point, after
which there is an effective limit on advancement for women. We examine the glass ceiling
hypothesis by looking at the dynamics of the income distribution -- the movement of women
and men through the distribution of income over time. We find that there is considerable
evidence in favor of a glass ceiling both in Germany and the United States. In Germany the
glass ceiling is evident in higher incomes while in the United States the glass ceiling is
evident at all incomes levels.
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