Advanced Search
MyIDEAS: Login to save this article or follow this journal

Stimulating Employment Growth with Higher Wages? A New Approach to Addressing an Old Controversy

Contents:

Author Info

  • Jens Suedekum
  • Uwe Blien

Abstract

We analyse the impact of wages on employment growth in West German local industries (1993-2002), addressing the tension between cost and potentially offsetting demand side effects. We construct a neutralised regional wage level that is detached from various productivity influences. A positive value implies 'overly high' labour costs, but also high local purchasing power. A subsequent employment growth regression yields significantly negative effects associated with this indicator. Cost push effects dominate, but our estimates suggest that demand side repercussions have a mitigating effect. There is considerable variation across industries, but in no case we find a positive employment reaction. Copyright 2007 Blackwell Publishing Ltd..

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-6435.2007.00379.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 60 (2007)
Issue (Month): 3 (08)
Pages: 441-464

as in new window
Handle: RePEc:bla:kyklos:v:60:y:2007:i:3:p:441-464

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=0023-5962

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ulrich Zierahn, 2012. "The importance of spatial autocorrelation for regional employment growth in Germany," Jahrbuch für Regionalwissenschaft, Springer, vol. 32(1), pages 19-43, March.
  2. Camille Logeay & Sabine Stephan & Rudolf Zwiener, 2011. "Driving forces behind the sectoral wage costs differentials in Europe," IMK Working Paper 10-2011, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  3. Raimund Krumm & Harald Strotmann, 2010. "The Impact of Regional Supply and Demand Conditions on Job Creation and Destruction," IAW Discussion Papers, Institut für Angewandte Wirtschaftsforschung (IAW) 61, Institut für Angewandte Wirtschaftsforschung (IAW).
  4. Uwe Blien & Lutz Eigenhueller & Markus Promberger & Norbert Schanne, 2013. "The Shift-Share Regression: An Application to Regional Employ-ment Development," ERSA conference papers ersa13p614, European Regional Science Association.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:60:y:2007:i:3:p:441-464. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.