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Article: WAGE CURVE ANALYSES OF ESTABLISHMENT DATA FROM WESTERN GERMANY.(Statistical Data Included)
- Article from:
- Industrial and Labor Relations Review
- Article date:
- July 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 Cornell University, ILR Review. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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UWE BLIEN [*]
Using the IAB Establishment Panel, which is representative for western Germany, the authors find that establishment-level wages reacted to variations in the regional unemployment rate. The elasticity of wages with respect to unemployment, they estimate, was about -0.1. This responsiveness of the wage to regional variation is close to estimates found by other researchers (using individual rather than establishment data) for other countries, and contradicts the view that Germany's labor market, largely due to the nature of collective bargaining in that country, is relatively inflexible. Possible explanations for this finding are that the negotiated ...