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Wage Dispersion in Germany and the US: Is There Compression from Below?

In: Innovation, Employment and Growth Policy Issues in the EU and the US

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  • Joachim Möller

    (University of Regensburg)

Abstract

The reasons behind the opening up of striking differences in labor market performance between the US and (continental) European countries since the seventies are still open to debate. Many observers blame European labor market rigidities for the employment gap. According to the standard view the USA is the shining example of flexibility and freedom of the market, while Germany and France are bulwarks of institutional rigidities, high union coverage and comfortable welfare states floors. With respect to the wage structure it is presumed that continental European countries are characterized by much less differentiation compared to the US. The deformation of the wage distribution is considered to be one of the main reasons for the labor market crisis especially in Germany.

Suggested Citation

  • Joachim Möller, 2009. "Wage Dispersion in Germany and the US: Is There Compression from Below?," Springer Books, in: Paul J.J. Welfens & John T. Addison (ed.), Innovation, Employment and Growth Policy Issues in the EU and the US, chapter 0, pages 41-59, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-00631-9_2
    DOI: 10.1007/978-3-642-00631-9_2
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    References listed on IDEAS

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    Cited by:

    1. Möller, Joachim, 2016. "Lohnungleichheit: Gibt es eine Trendwende? (German wage inequality: Is there a trend reversal?)," IAB-Discussion Paper 201609, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Gustav A. Horn & Heike Joebges & Torsten Niechoj & Christian R. Proaño & Simon Sturn & Silke Tober & Achim Truger & Till van Treeck, 2009. "Von der Finanzkrise zur Weltwirtschaftskrise (I)," IMK Report 38-2009, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. Joachim Möller & Karl Brenke & Gert Wagner & Thorsten Schulten & Gustav Horn & Hagen Lesch & Alexander Mayer & Lisa Schmid & Patrick Arni & Werner Eichhorst & Alexander Spermann & Klaus Zimmermann, 2014. "Das Mindestlohngesetz — Hoffnungen und Befürchtungen," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(6), pages 387-406, June.
    4. Michael Moritz, 2011. "The Impact of Czech Commuters on the German Labour Market," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(1), pages 40-58.

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