"The paper is an attempt to test whether there is a wage curve in western Germany and if so whether it might be explained by efficiency-wage forces. Such a theory makes two predictions. First, where the degree of supervision is low, wages will be high. Second, where the degree of supervision is low, the unemployment elasticity of pay will be high. The German Socioeconomic Panel is one of the few data sets that records information about the degree of supervision. Using these data, we find that the first prediction is accepted and the second prediction is rejected. Our broad judgement is that there is a German wage curve with an elasticity of approximately -0.1, but that the results are not strongly supportive of an efficiency-wage explanation for its existence." (author's abstract, IAB-Doku) ((en))
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.