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Wage Rigidities in Western Germany: Microeconometric Evidence from the 1990s

Patrick Puhani

No 3009, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper investigates whether and in what sense the west German wage structure has been ‘rigid’ in the 1990s. To test the hypothesis that a rigid wage structure has been responsible for rising low-skilled unemployment, I propose a methodology that makes less restrictive identifying assumptions than some previous related work. I find that market forces justified the relative stability of educational wage premia. Relative wages did not, however, respond to negative net demand shocks for young workers and white-collar workers.

Keywords: Germany; identification; rigidities; unemployment; wages (search for similar items in EconPapers)
JEL-codes: J31 J64 (search for similar items in EconPapers)
Date: 2001-10
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Working Paper: Wage Rigidities in Western Germany? Microeconometric Evidence from the 1990s (2002) Downloads
Working Paper: Wage Rigidities in Western Germany? Microeconometric Evidence from the 1990s (2001) Downloads
Working Paper: Wage Rigidities in Western Germany? Microeconometric Evidence from the 1990s (2001) Downloads
Working Paper: Wage rigidities in Western Germany? Microeconometric evidence from the 1990s (2001) Downloads
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