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Skills, Wages and Employment in East and West Germany

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  • Felix Fitzroy
  • Michael Funke

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) Competences, salaires et emploi dans l'est et l'ouest de l'Allemagne, Reg. Studies 32 , 459-467. A partir des donnees decomposees provenant de vingt-huit industries a deux chiffres situees dans l'est et l'ouest de l'Allemagne unifiee, on fait une estimation de l'emploi pour trois categories de competences des ouvriers. Les elasticites de l'emploi s'averent uniformement plus elevees pour les ouvriers non-qualifies. Les resultats contredisent les declarations des syndicats selon lesquelles les salaires ont peu d'interet avec les suppressions d'emplois dans l'est de l'Allemagne, et viennent a l'appui de l'hypothese qui prone la complementarite du capital et des competences. FITZROY F. und FUNKE M. (1998) Qualifikation, Lohne und Erwerbstatigkeit in Ost- und Westdeutschland, , Reg. Studies 32 , 459-467. Es werden getrennte Daten von 28 zweistelligen herstellenden Industrien in den ostlichen und westlichen Teilen des vereinigten Deutschland dazu benutzt, Erwerbstatigkeit fur drei Qualifikationsstufen zu schatzen. Die Beschaftigungselastizitat ist durchweg hoher bei ungelernten Arbeitern. Die Ergebnisse widerlegen die Behauptungen der Gewerkschaften, dass zwischen Lohnen und Stellenverlusten in Ostdeutschland wenig Beziehung besteht und bestatigen die Hypothese deskomplimentaren Verhaltens von Kapital und Fahigkeiten.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 32 (1998)
Issue (Month): 5 ()
Pages: 459-467

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Handle: RePEc:taf:regstd:v:32:y:1998:i:5:p:459-467

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Related research

Keywords: Labour Demand; Wage Differentials; Panel Data;

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References

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  1. 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.
  2. Colin Lawrence & Robert Z. Lawrence, 1985. "Manufacturing Wage Dispersion: An End Game Interpretation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 16(1), pages 47-116.
  3. 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.
  4. 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, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  5. 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.
  6. 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.
  7. Bresson, G & Kramarz, F & Sevestre, P, 1992. "Heterogeneous Labor and the Dynamics of Aggregate Labor Demand: Some Estimations Using Panel Data," Empirical Economics, Springer, vol. 17(1), pages 153-68.
  8. Stephen Nickell & D Nicolitsas, 1994. "Wages," CEP Discussion Papers dp0219, Centre for Economic Performance, LSE.
  9. 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.
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