Relative Demand and Supply of Skills and Wage Rigidity in the United States, Britain, and Western Germany
AbstractI extend a two-skill group model by Katz andMurphy (1992) to estimate relative demand and supply for skills as well as wage rigidity in Germany. Using three data sets for Germany, two for Britain and one for the United States, I simulate the change in relative wage rigidity (wage compression) in all three countries during the early and mid 1990s, this being the period when unemployment increased in Germany but fell in Britain and the US. I show that in this period, Germany experienced wage compression (relative wage rigidity), whereas Britain and the US experienced wage decompression. This evidence is consistent with the Krugman (1994) hypothesis.
Download InfoIf 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.
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 InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 228 (2008)
Issue (Month): 5+6 (December)
Contact details of provider:
Postal: Licher Straße 74, 35394 Gießen
Phone: +49 (0)641 99 22 001
Fax: +49 (0)641 99 22 009
Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
More information through EDIRC
Wage; earnings; unemployment; non-employment; rigidity;
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dustmann, Christian & Ludsteck, Johannes & Schönberg, Uta, 2007.
"Revisiting the German Wage Structure,"
IZA Discussion Papers
2685, Institute for the Study of Labor (IZA).
- Patrick A. Puhani, 2005. "Relative Supply and Demand for Skills in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(IV), pages 555-584, December.
- Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
- Knut Gerlach & Gesine Stephan, 2006. "Bargaining Regimes and Wage Dispersion," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(6), pages 629-645, November.
- Angrist, Joshua D, 1995.
"The Economic Returns to Schooling in the West Bank and Gaza Strip,"
American Economic Review,
American Economic Association, vol. 85(5), pages 1065-87, December.
- Joshua D. Angrist, 1995. "The Economic Returns to Schooling in the West Bank and Gaza Strip," Working papers 95-5, Massachusetts Institute of Technology (MIT), Department of Economics.
- David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998.
"Computing Inequality: Have Computers Changed The Labor Market?,"
The Quarterly Journal of Economics,
MIT Press, vol. 113(4), pages 1169-1213, November.
- David Autor & Lawrence Katz & Alan Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
- David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," NBER Working Papers 5956, National Bureau of Economic Research, Inc.
- Paul Krugman, 1994.
"Past and prospective causes of high unemployment,"
Proceedings - Economic Policy Symposium - Jackson Hole,
Federal Reserve Bank of Kansas City, issue Jan, pages 49-98.
- Fitzenberger, Bernd & Kohn, Karsten, 2006.
"Skill Wage Premia, Employment, and Cohort Effects: Are Workers in Germany All of the Same Type?,"
IZA Discussion Papers
2185, Institute for the Study of Labor (IZA).
- Fitzenberger, Bernd & Kohn, Karsten, 2006. "Skill wage premia, employment, and cohort effects: are workers in Germany all of the same type?," ZEW Discussion Papers 06-44, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Hübler, Olaf & Jirjahn, Uwe, 2001.
"Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages,"
IZA Discussion Papers
322, Institute for the Study of Labor (IZA).
- Olaf H¸bler & Uwe Jirjahn, 2003. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(4), pages 471-491, 09.
- Cornelissen, Thomas & Huebler, Oloaf, 2006.
"Downward Wage Rigidity and Job Mobility,"
Hannover Economic Papers (HEP)
dp-349, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- James J. Heckman & Lance Lochner & Christopher Taber, 1998.
"Explaining Rising Wage Inequality: Explorations with a Dynamic General Equilibrium Model of Labor Earnings with Heterogeneous Agents,"
NBER Working Papers
6384, National Bureau of Economic Research, Inc.
- James Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explanations With A Dynamic General Equilibrium Model of Labor Earnings With Heterogeneous Agents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 1-58, January.
- Marco Manacorda & Barbara Petrongolo, 1996.
"Skill Mismatch and Unemployment in OECD Countries,"
CEP Discussion Papers
dp0307, Centre for Economic Performance, LSE.
- Fitzenberger, Bernd & Wunderlich, Gaby, 2000.
"Gender wage differences in West Germany: a cohort analysis,"
ZEW Discussion Papers
00-48, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Bernd Fitzenberger & Gaby Wunderlich, 2002. "Gender Wage Differences in West Germany: A Cohort Analysis," German Economic Review, Verein für Socialpolitik, vol. 3(4), pages 379-414, November.
- Fitzenberger, Bernd & Franz, Wolfgang, 2000. "Jobs. Jobs? Jobs! Orientierungshilfen für den Weg zu mehr Beschäftigung," ZEW Discussion Papers 00-49, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Winker).
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.