After unification, real wages in Eastern Germany rose rapidly relative to labour productivity despite high and rising levels of unemployment. This substantial increase in wage levels relative to those in Western Germany is difficult to explain without recourse to models of union behaviour or collective bargaining. This paper applies and extends such models and evaluates plausible explanations for recent short-run wage developments in the ex-GDR.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
573.
Find related papers by JEL classification: E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
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[Downloadable!] (restricted)
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Blanchflower, D. & Oswald, A., 1989.
"The Wage Curve,"
Papers
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