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

Puhani, Patrick A.

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URL:	http://ub-madoc.bib.uni-mannheim.de/479
URN:	urn:nbn:de:bsz:180-madoc-4798
Document Type:	Working paper
Year of publication:	2001
The title of a journal, publication series:	None
Publication language:	English
Institution:	Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Classification:	JEL: J64 J31 ,
Subject headings (SWD):	Deutschland , Arbeitslosigkeit , Lohn
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.
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