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Lohnpolitik und Beschäftigung – Debatte ohne Ende?

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  • Jürgen Jerger
  • Oliver Landmann

Abstract

This paper takes a fresh look at the often confused – and therefore confusing – debate on the role of wage policy in tackling Germany’s unemployment problem. The key issues in this debate are the relative importance of wages and aggregate demand in the determination of employment, the appropriate behavior of wages in relation to productivity growth, and the significance of the purchasing power effect of wages. We argue that the most useful tool to address and resolve these issues is the basic textbook model of aggregate supply and aggregate demand. Most importantly, the model predicts that employment is governed by the ratio of aggregate nominal demand and the nominal wage level. The empirical picture strongly supports this assertion. In contrast, the relation between the rate of wage growth and the rate of productivity growth does not play the causal role in determining employment that is widely attributed to it.

Suggested Citation

  • Jürgen Jerger & Oliver Landmann, 2002. "Lohnpolitik und Beschäftigung – Debatte ohne Ende?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 3(2), pages 207-224, May.
    • Handle: RePEc:bla:perwir:v:3:y:2002:i:2:p:207-224
    DOI: 10.1111/1468-2516.00087
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    References listed on IDEAS

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    Cited by:

    1. Suedekum, Jens & Blien, Uwe, 2004. "Wages and Employment Growth: Disaggregated Evidence for West Germany," IZA Discussion Papers 1128, Institute of Labor Economics (IZA).
    2. Lehment, Harmen & Oskamp, Frank, 2004. "Gesamtwirtschaftliche Bedingungen für einen Anstieg des Arbeitsvolumens in Deutschland," Open Access Publications from Kiel Institute for the World Economy 3216, Kiel Institute for the World Economy (IfW Kiel).
    3. Raddatz, Guido & Wolf, Sascha, 2007. "Irrglaube Mindestlöhne: Trügerische Hoffnung, zerstörte Beschäftigungschancen," Argumente zur Marktwirtschaft und Politik 99, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    4. Farhauer, Oliver & Borchardt, Katja & Stargardt, Tom, 2004. "Bürgerversicherung: Die Wirkung von Kopfprämien auf den Arbeitsmarkt," Discussion Papers 2004/8, Technische Universität Berlin, School of Economics and Management.

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