Job Movement and Real Wage Flexibility in Eastern and Western Parts of Germany
Sajid Anwar () and
Lili Kang ()
Additional contact information
Lili Kang: Shanghai Lixin University of Accounting and Finance
Journal of Economics and Finance, 2020, vol. 44, issue 4, No 8, 764-789
Abstract We use a unique microdata set that covers the 1984–2009 period to estimate real wage flexibility in Eastern and Western parts of Germany. Empirical analysis reveals that wages of male job stayers in the Eastern and Western parts of Germany are rigid, which leads to significant wage flexibility for internal and external movers. At the aggregate level, wages of the external movers are more flexible than the wages of job stayers in bust periods (when labour market is slack) and more rigid than the wages of job stayers in boom periods (when labour market is tight). In overall terms, the West German labour market is mature but conditions in the East German labour market are consistent with transition economies. Wage flexibility in Germany’s labour market can be attributed to relatively more flexible wages of the external and internal movers in a slack labour market.
Keywords: Real wage flexibility; Job movement; Unemployment; Eastern and Western Germany (search for similar items in EconPapers)
JEL-codes: E32 J31 K31 J64 M55 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s12197-020-09516-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:jecfin:v:44:y:2020:i:4:d:10.1007_s12197-020-09516-6
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/12197/PS2
Access Statistics for this article
Journal of Economics and Finance is currently edited by James Payne
More articles in Journal of Economics and Finance from Springer, Academy of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().