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Disentangling Pay and Productivity in a Corporatist Economy: The Case of Germany

Author

Listed:
  • Fuess Jr., Scott M.

    (University of Nebraska-Lincoln)

  • Millea, Meghan

    (Mississippi State University)

Abstract

Conventional theory predicts that productivity gains lead to pay hikes. Pay increases, however, can influence labor productivity. But what about in a corporatist economy? Focusing on Germany, we use an innovative technique developed by Geweke to disentangle the relationship between pay and productivity.

Suggested Citation

  • Fuess Jr., Scott M. & Millea, Meghan, 2002. "Disentangling Pay and Productivity in a Corporatist Economy: The Case of Germany," IZA Discussion Papers 597, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp597
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    References listed on IDEAS

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    1. Phillips, P C B, 1987. "Time Series Regression with a Unit Root," Econometrica, Econometric Society, vol. 55(2), pages 277-301, March.
    2. Teulings,Coen & Hartog,Joop, 2008. "Corporatism or Competition?," Cambridge Books, Cambridge University Press, number 9780521049399.
    3. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    4. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    5. Scott M. Fuess & Meghan Millea, 2002. "Do Employers Pay Efficiency Wages? Evidence from Japan," Journal of Labor Research, Transaction Publishers, vol. 23(2), pages 278-292, April.
    6. Phillips, P C B, 1987. "Time Series Regression with a Unit Root," Econometrica, Econometric Society, vol. 55(2), pages 277-301, March.
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    More about this item

    Keywords

    labor contracts; efficiency wages; corporatism;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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