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

Patrick Puhani

No 334, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 which makes less restrictive identifying assumptions than some previous related work. I find that the relative stability of educational wage premia was justified by market forces. However, relative wages did not respond to negative net demand shocks for young workers, as well as white-collar workers.

Keywords: Wages; unemployment; rigidities; identification; Germany (search for similar items in EconPapers)
JEL-codes: J31 J64 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2001-07
New Economics Papers: this item is included in nep-eec, nep-lab and nep-ltv
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Wage Rigidities in Western Germany? Microeconometric Evidence from the 1990s (2002)
Working Paper: Wage Rigidities in Western Germany: Microeconometric Evidence from the 1990s (2001)
Working Paper: Wage Rigidities in Western Germany? Microeconometric Evidence from the 1990s (2001)
Working Paper: Wage rigidities in Western Germany? Microeconometric evidence from the 1990s (2001)
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