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Skills, Wages and Employment in East and West Germany

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Author Info
Felix Fitzroy, Michael Funke

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Abstract

FITZROY F. and FUNKE M. (1998) Skills, wages and employment in east and west Germany, Reg. Studies 32 , 459-467. Disaggregated data from 28 two-digit manufacturing industries in the east and west parts of unified Germany are used to estimate employment for three skill categories of blue collar workers. Employment elasticities are uniformly higher for unskilled labour. The results contradict union claims that wages had little relevance for east German job losses, and confirm the capitalskill complementarity hypothesis. FITZROY F. et FUNKE M. (1998) Compétences, salaires et emploi dans l'est et l'ouest de l'Allemagne, Reg. Studies 32 , 459-467. A partir des données décomposées provenant de vingt-huit industries à deux chiffres situées dans l'est et l'ouest de l'Allemagne unifiée, on fait une estimation de l'emploi pour trois catégories de compétences des ouvriers. Les élasticités de l'emploi s'avèrent uniformément plus élevées pour les ouvriers non-qualifiés. Les résultats contredisent les déclarations des syndicats selon lesquelles les salaires ont peu d'intérêt avec les suppressions d'emplois dans l'est de l'Allemagne, et viennent à l'appui de l'hypothèse qui prône la complémentarité du capital et des compétences. FITZROY F. und FUNKE M. (1998) Qualifikation, Löhne und Erwerbstätigkeit in Ost- und Westdeutschland, , Reg. Studies 32 , 459–467. Es werden getrennte Daten von 28 zweistelligen herstellenden Industrien in den östlichen und westlichen Teilen des vereinigten Deutschland dazu benutzt, Erwerbstätigkeit für drei Qualifikationsstufen zu schätzen. Die Beschäftigungselastizität ist durchweg höher bei ungelernten Arbeitern. Die Ergebnisse widerlegen die Behauptungen der Gewerkschaften, daß zwischen Löhnen und Stellenverlusten in Ostdeutschland wenig Beziehung besteht und bestätigen die Hypothese deskomplimentären Verhaltens von Kapital und Fähigkeiten.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 32 (1998)
Issue (Month): 5 (July)
Pages: 459-467
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Handle: RePEc:taf:regstd:v:32:y:1998:i:5:p:459-467

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Keywords: Labour Demand Wage Differentials Panel Data;

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References listed on IDEAS
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.:
  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  2. Burda, Michael C & Funke, Michael, 1991. "German Trade Unions After Unification: Third Degree Wage Discriminating Monopolists?," CEPR Discussion Papers 573, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  4. Tinsley, P A, 1971. "A Variable Adjustment Model of Labor Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 12(3), pages 482-510, October. [Downloadable!] (restricted)
  5. Stephen Nickell & D Nicolitsas, 1994. "Wages," CEP Discussion Papers dp0219, Centre for Economic Performance, LSE. [Downloadable!]
  6. Felix Fitzroy & Michael Funke, 1993. "Real Wages, Investment and Employment - New Evidence From West German Sectoral Data," CRIEFF Discussion Papers 9305, Centre for Research into Industry, Enterprise, Finance and the Firm.
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  7. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Sebastián Claro, 2002. "On the Costs and Effectiveness of Tarjeting State Employment: Germany in the 1990s and China in the 2000s," Documentos de Trabajo 218, Instituto de Economía. Pontificia Universidad Católica de Chile.. [Downloadable!]
  2. Sebastián Claro, 2004. "Vertical and Horizontal Dimensions of Trade Liberalization," Documentos de Trabajo 265, Instituto de Economía. Pontificia Universidad Católica de Chile.. [Downloadable!]
  3. Dennis J. Snower & Christian Merkl, 2006. "The Caring Hand that Cripples: The East German Labor Market After Reunification (Detailed Version)," IZA Discussion Papers 2066, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Falk, Martin & Koebel, Bertrand, 2000. "A dynamic heterogeneous labour demand model for German manufacturing," ZEW Discussion Papers 00-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  5. Arnd Kölling & Thorsten Schank, 2002. "Skill-biased technological change, international trade and the wage structure," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B1-3, International Conferences on Panel Data. [Downloadable!]
    Other versions:
  6. Koebel, Bertrand & Falk, Martin, 1999. "Curvature conditions and substitution pattern among capital, energy, materials and heterogeneous labour," ZEW Discussion Papers 99-06, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  7. Bonin, Holger, 2005. "Tarifpolitik, Entgeltflexibilität und Beschäftigung in Ostdeutschland (Colletive bargaining policy, wage flexibility and employment in eastern Germany)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 165-179. [Downloadable!]
  8. Schank, Thorsten, 2003. "Die Beschäftigung von Un- und Angelernten : eine Analyse mit dem Linked Employer-Employee Datensatz des IAB (Employment of unskilled and semi-skilled workers * an analysis based on the IAB Linked Emp," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(3), pages 257-270. [Downloadable!]
  9. Lena Jacobi & Sandra Schaffner, 2008. "Does Marginal Employment Substitute Regular Employment? – A Heterogeneous Dynamic Labor Demand Approach for Germany," Ruhr Economic Papers 0056, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
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