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Are There Election Cycles in Wage Agreements? An Analysis of German Public Employees

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  • Matschke, Xenia

Abstract

In this article, the possibility of Nordhaus political wage cycles in the West German public services during 1961-65 is investigated. Since wage negotiations are centralized, one might expect a systematically higher wage increase shortly before a federal election. A regression of wage increases from 30 consecutive public sector pay contracts is run on an election variable and several additional explanatory variables. The null of no election influence is rejected for worker wage increases. The estimated increase in wages due to an imminent election is predicted to be in the range of 2.5 to 3 percentage points. Copyright 2003 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 114 (2003)
Issue (Month): 1-2 (January)
Pages: 103-35

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Handle: RePEc:kap:pubcho:v:114:y:2003:i:1-2:p:103-35

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Afonso, António & Gomes, Pedro Maia, 2010. "Interactions between Private and Public Sector Wages," IZA Discussion Papers 5322, Institute for the Study of Labor (IZA).
  2. Alexandre SAUQUET & Antoine CAZALS, 2013. "When does cooperation win and why? Political cycles and participation in international environmental agreements," Working Papers 201320, CERDI.
  3. Lamo, Ana & Pérez, Javier J. & Schuknecht, Ludger, 2013. "Are government wages interlinked with private sector wages?," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 697-712.
  4. Fernàndez-de-Córdoba, Gonzalo & Pérez, Javier J. & Torres, José L., 2009. "Public and private sector wages interactions in a general equilibrium model," Working Paper Series 1099, European Central Bank.

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