The Role of Wage and Skill Differences in US-German Employment Differences
The most popular explanation for greater job creation in the US than in Germany is that greater dispersion of wages coupled with less regulations governing the labour market and the product market in the US has induced firms to employ many less skilled workers. While popular, these explanations turn out to be difficult to prove empirically. Based on the Comparative German American Structural Database and the International Adult Literacy Survey we find that: employment rates differ more than unemployment rates by skill levels and overall; German and US relative pay by level of skill was similar in 1970 but diverged in the 1980s; the German work force is more skilled than the US work force especially at the lower skill levels; the employment of skilled to unskilled labour within industries is unrelated to country differences in skill premium but changes in relative wages are related to changes in relative employment; and the differing dispersion of wages is not a major contributor to differences in employment rates between Germany and the US. The jobs problem in Germany is not primarily one of relative labor demand but of demand for labor in general.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 219 (1999)
Issue (Month): 1+2 (July)
|Contact details of provider:|| Postal: Licher Straße 74, 35394 Gießen|
Phone: +49 (0)641 99 22 001
Fax: +49 (0)641 99 22 009
Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
More information through EDIRC
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.:
- Siebert, Horst, 1997.
"Labor market rigidities and unemployment in Europe,"
Kiel Working Papers
787, Kiel Institute for the World Economy (IfW).
- Siebert, Horst, 1997. "Labor market rigidities and unemployment in Europe," Kiel Working Papers 787, Kiel Institute for the World Economy.
- Fitzenberger, Bernd & Franz, Wolfgang, 1997. "Flexibilität der qualifikatorischen Lohnstruktur und Lastverteilung der Arbeitslosigkeit: Eine ökonometrische Analyse für Westdeutschland," ZEW Discussion Papers 97-32, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Nickell, Stephen & Bell, Brian, 1996. "Changes in the Distribution of Wages and Unemployment in OECD Countries," American Economic Review, American Economic Association, vol. 86(2), pages 302-08, May.
- Richard B. Freeman & Ronald Schettkat, 2000. "Low Wage Services: Interpreting the US - German Difference," NBER Working Papers 7611, National Bureau of Economic Research, Inc.
- Horst Siebert, 1997. "Labor Market Rigidities: At the Root of Unemployment in Europe," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 37-54, Summer.
When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:219:y:1999:i:1-2:p:49-66. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Winker)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.