IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Regional and Industrial Wage Dynamics in West Germany and the United States / Regionale und industrielle Lohndynamik in Westdeutschland und den USA

  • Mertens Antje


    (Max-Planck-Institut für Bildunsgsforschung, Forschungsbereich Bildung, Arbeit und gesellschaftliche Entwicklung, Lentzeallee 94, D-14195 Berlin)

Registered author(s):

    It is commonly known that every economy is faced with the problem of unevenly distributed labour demand changes across industries, occupations and regions. In competitive labour markets flexible wages and the mobility of labour would lead to a new equilibrium distribution of wages and employment. Regional or industrial unemployment dispersion in Germany is often blamed on a lack of wage adjustments and the lack of labour mobility when economic fortunes are not distributed evenly, but this hypothesis is hardly ever tested. This paper asks how wage reactions in Germany compare with responses in the United States using individual level data. As a first step labour demand shocks are estimated from employment time series data using deterministic detrending and the Hodrick-Prescott filter. These are then included in typical wage regressions based on micro data. The results propose that German labour markets are not as inflexible as simple evidence might suggest. Although wages are regionally only flexible in the United States, wages are found to react to industrial labour demand shocks in both countries. Especially for more experienced and therefore less mobile groups in the German labour market wages react to industrial labour demand shocks.

    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.

    File URL:
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    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.

    Article provided by De Gruyter in its journal Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik).

    Volume (Year): 222 (2002)
    Issue (Month): 5 (October)
    Pages: 584-608

    in new window

    Handle: RePEc:jns:jbstat:v:222:y:2002:i:5:p:584-608
    Contact details of provider: Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:222:y:2002:i:5:p:584-608. 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 Golla)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.