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Wage cyclicality and the wage curve under the microscope

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Author Info
Ludsteck, Johannes () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

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Abstract

"Using large data sets from the German employment and unemployment register 1985-2004, we investigate aggregate wage cyclicality and the wage curve for establishment stayers and movers. We find that movers' wage responses to aggregate unemployment rate changes exceed these of stayers by about 30-40 percent. A new finding is that the increments of movers over stayer responses to regional unemployment shocks are considerably greater and amount to about 150 percent. This difference in differences (responses to regional compared with aggregate cycles and responses of movers compared with stayers) can be explained by the importance of centralized wage bargaining in Germany." (author's abstract, IAB-Doku) ((en))

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Publisher Info
Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200811.

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Length: 23 pages
Date of creation: 31 Jul 2008
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Handle: RePEc:iab:iabdpa:200811

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Related research
Keywords: IAB-Beschäftigtenstichprobe Lohnentwicklung Lohnkurve zwischenbetriebliche Mobilität Arbeitskräftemobilität Arbeitskräfte Arbeitslosenquote regionaler Arbeitsmarkt Arbeitslosigkeit - Auswirkungen Westdeutschland Bundesrepublik Deutschland

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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  1. Bell, Brian & Nickell, Stephen & Quintini, Glenda, 2002. "Wage equations, wage curves and all that," Labour Economics, Elsevier, vol. 9(3), pages 341-360, July. [Downloadable!] (restricted)
    Other versions:
  2. Amemiya, Takeshi, 1978. "A Note on a Random Coefficients Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 793-96, October. [Downloadable!] (restricted)
  3. Peter Egger & Michael Pfaffermayr, 2002. "Long Run and Short Effects in Static Panel Models," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B6-2, International Conferences on Panel Data. [Downloadable!]
  4. Paul J. Devereux, 2001. "The Cyclicality of real wages within employer-employee matches," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 54(4), pages 835-850, July.
  5. Paul J. Devereux & Robert A. Hart, 2005. "Real Wage Cyclicality of Job Stayers, Within-Company Job Movers, and Between-Company Job Movers," IZA Discussion Papers 1651, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Ammermueller, Andreas & Lucifora, Claudio & Origo, Federica & Zwick, Thomas, 2007. "Still searching for the wage curve : evidence from Germany and Italy," ZEW Discussion Papers 07-008, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  7. David G. Blanchflower & Andrew J. Oswald, 2005. "The Wage Curve Reloaded," NBER Working Papers 11338, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Paul J. Devereux, 2002. "Occupational Upgrading and the Business Cycle," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 16(3), pages 423-452, 09. [Downloadable!] (restricted)
  9. Baltagi, Badi H & Griffin, James M, 1984. "Short and Long Run Effects in Pooled Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(3), pages 631-45, October. [Downloadable!] (restricted)
  10. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August. [Downloadable!] (restricted)
  11. Katharine G. Abraham & John C. Haltiwanger, 1995. "Real Wages and the Business Cycle," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1215-1264, September. [Downloadable!] (restricted)
  12. Joseph G. Altonji & Paul J. Devereux, 1999. "The Extent and Consequences of Downward Nominal Wage Rigidity," NBER Working Papers 7236, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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