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Wage flexibility of older workers and the role of institutions - evidence from the German LIAB data set

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  • Kerndler, Martin

Abstract

High and rigid wages are a threat for employment, especially for older workers. While wage levels of job stayers in many countries are not decreasing in late working life, little is known about the evolution of wage flexibility over the lifecycle. Using the German LIAB data set, this paper investigates the age pattern of wage flexibility with respect to permanent and transitory shocks to firm productivity. Works councils are found to have an important effect on wage flexibility of older workers.

Suggested Citation

  • Kerndler, Martin, 2017. "Wage flexibility of older workers and the role of institutions - evidence from the German LIAB data set," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168160, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168160
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    More about this item

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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