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

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Author Info
Patrick A. Puhani () (SIAW, University of Sankt Gallen)

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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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Paper provided by International Conferences on Panel Data in its series 10th International Conference on Panel Data, Berlin, July 5-6, 2002 with number D3-3.

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Date of creation: Mar 2002
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Handle: RePEc:cpd:pd2002:d3-3

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Related research
Keywords: wages; unemployment; rigidities; identification; Germany;

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

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