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Wages and employment: Germany, the Netherlands and the United States

Author

Listed:
  • Wolfgang Ochel

Abstract

Since the beginning of the 1970s, unemployment in Germany has increased by nearly one million after each recession, but in the Netherlands and in the United States the unemployment rates have been reduced to 3.3% and 4.25% respectively. The reduction of unemployment in the Netherlands and in the U.S. is largely attributable to favourable developments in employment. Taking the last major world recession in 1982 as a starting point, the number of employed in the Netherlands rose by 31% and by 32% in the U.S. by 1998. In west Germany the number of employed grew by only 3% between 1982 and 1998. The increase in employment in the Netherlands and the U.S., in contrast to Germany, was primarily the result or a lower increase in wages and greater wage differentiation in the lower wages groups.

Suggested Citation

  • Wolfgang Ochel, 2000. "Wages and employment: Germany, the Netherlands and the United States," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(30), pages 35-36, November.
  • Handle: RePEc:ces:ifosdt:v:53:y:2000:i:30:p:35-36
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    More about this item

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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