IDEAS home Printed from https://ideas.repec.org/a/jns/jbstat/v223y2003i1p23-57.html
   My bibliography  Save this article

Zur ökonomischen Rationalität von Lohnrigiditäten aus der Sicht von Unternehmen / The Rationale for Wage Rigidity: Employers' Viewpoint

Author

Listed:
  • Franz Wolfgang

    ()

  • Pfeiffer Friedhelm

    () (Zentrum für Europäische Wirtschaftsforschung (ZEW), Postfach 103443, D-68034 Mannheim. Tel.: ++49/+6 21/12 35-1 00/1 01, Fax: ++49/+6 21/12 35-2 22)

Abstract

This study provides evidence for the reasons of wage rigidity, among others collective wage agreements, efficiency wages, implicit contracts and the insider-outsider theory, based on a survey of 801 firms conducted in spring 2000. According to survey respondents the mechanisms creating wage rigidity differ between skill groups. In total strong support has been found for explanations based on collective wage agreements and on efficiency wages. Survey respondents indicated that collective wage agreements and implicit contracts are important reasons for wage rigidities for the (low) skilled. Specific human capital, turnover costs and negative signals for new hires are important reasons for the high skilled. Explanations based on mechanism to enhance labour productivity are significant for all skill groups to the same degree. Firms who are covered by collective wage agreements seldom make use of hardship clauses which have been introduced into collective wage agreements to enhance flexibility since the nineteenth. One reason seem to be efficiency wages which are responsible for wage rigidities in addition to collective wage agreements. Compared to findings from the USA, in Germany collective wage agreements, insider- outsider-mechanism and firm specific human capital seem to be more important explanations.

Suggested Citation

  • Franz Wolfgang & Pfeiffer Friedhelm, 2003. "Zur ökonomischen Rationalität von Lohnrigiditäten aus der Sicht von Unternehmen / The Rationale for Wage Rigidity: Employers' Viewpoint," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(1), pages 23-57, February.
  • Handle: RePEc:jns:jbstat:v:223:y:2003:i:1:p:23-57
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/jbnst.2003.223.issue-1/jbnst-2003-0103/jbnst-2003-0103.xml?format=INT
    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 search for a different version of it.

    References listed on IDEAS

    as
    1. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    2. Fehr, Ernst & Goette, Lorenz, 2005. "Robustness and real consequences of nominal wage rigidity," Journal of Monetary Economics, Elsevier, vol. 52(4), pages 779-804, May.
    3. Ernst Fehr & Armin Falk, 1999. "Wage Rigidity in a Competitive Incomplete Contract Market," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 106-134, February.
    4. Alan Manning, 1995. "How Do We Know That Real Wages Are Too High?," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1111-1125.
    5. Agell, Jonas & Lundborg, Per, 1995. " Theories of Pay and Unemployment: Survey Evidence from Swedish Manufacturing Firms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(2), pages 295-307, June.
    6. Franz, Wolfgang, 1993. "Unvollkommene Arbeitsmärkte in makroökonomischen Modellen: Eine Übersicht," Discussion Papers 1, University of Konstanz, Center for International Labor Economics (CILE).
    7. Fitzenberger, Bernd & Franz, Wolfgang, 1999. "Industry-Level Wage Bargaining: A Partial Rehabilitation--The German Experience," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(4), pages 437-457, September.
    8. Franz, Wolfgang & Gutzeit, Martin & Lessner, Jan & Oechsler, Walter A. & Pfeiffer, Friedhelm & Reichmann, Lars & Rieble, Volker & Roll, Jochen, 2000. "Flexibilisierung der Arbeitsentgelte und Beschäftigungseffekte: Ergebnisse einer Unternehmensbefragung," ZEW Dokumentationen 00-09, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. Bewley, Truman F., 1998. "Why not cut pay?," European Economic Review, Elsevier, vol. 42(3-5), pages 459-490, May.
    10. Saint-Paul, Gilles, 1997. "The Rise and Persistence of Rigidities," American Economic Review, American Economic Association, vol. 87(2), pages 290-294, May.
    11. Bewley, Truman F, 1995. "A Depressed Labor Market as Explained by Participants," American Economic Review, American Economic Association, vol. 85(2), pages 250-254, May.
    12. Alan S. Blinder & Don H. Choi, 1990. "A Shred of Evidence on Theories of Wage Stickiness," The Quarterly Journal of Economics, Oxford University Press, vol. 105(4), pages 1003-1015.
    13. Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834, March.
    14. Berthold, Norbert, 2000. "Das Bündnis für Arbeit - Ein Weg aus der institutionellen Verflechtungsfalle," Discussion Paper Series 39, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    15. Franz, Wolfgang, 1995. "Die Lohnfindung in Deutschland in einer internationalen Perspektive: Ist das deutsche System ein Auslaufmodell?," Discussion Papers 24, University of Konstanz, Center for International Labor Economics (CILE).
    16. Fehr, Ernst, 2000. "The Robustness and Real Consequences of Nominal Wage Rigidity," CEPR Discussion Papers 2516, C.E.P.R. Discussion Papers.
    17. Carl M. Campbell III & Kunal S. Kamlani, 1997. "The Reasons for Wage Rigidity: Evidence from a Survey of Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 759-789.
    18. Kaiser, Ulrich & Pfeiffer, Friedhelm, 2000. "Tarifverträge und Beschäftigungspolitik in Dienstleistungsunternehmen," ZEW Discussion Papers 00-34, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ulman, Lloyd & Gerlach, Knut & Giuliano, Paola, 2005. "Wage Moderation and Rising Unemployment," Institute for Research on Labor and Employment, Working Paper Series qt6cf9726r, Institute of Industrial Relations, UC Berkeley.
    2. Nicole Guertzgen, 2009. "Rent-sharing and Collective Bargaining Coverage: Evidence from Linked Employer-Employee Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(2), pages 323-349, June.
    3. Johannes Gernandt & Friedhelm Pfeiffer, 2006. "Einstiegslöhne bei unvollkommenen Arbeitsmärkten," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 147-172, May.
    4. Pfeiffer, Friedhelm, 2003. "Ausmaß und Konsequenz von Lohnrigiditäten (Extent and consequences of wage regidities)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 616-633.
    5. Gerlach Knut & Hübler Olaf, 2009. "Employment Adjustments on the Internal and External Labour Market – An Empirical Study with Personnel Records of a German Company," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(2-3), pages 198-213, April.
    6. Guertzgen Nicole, 2009. "Firm Heterogeneity and Wages under Different Bargaining Regimes: Does a Centralised Union Care for Low-Productivity Firms?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(2-3), pages 239-253, April.
    7. Hagen Lesch & Wernhard Möschel & Claus Schnabel & Martin Kannegiesser & Friedhelm Pfeiffer & Reinhard Bispinck & Hartmut Seifert, 2004. "Betriebsvereinbarung versus Tarifsystem," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(03), pages 3-23, February.
    8. Gerlach Knut & Stephan Gesine, 2006. "Bargaining Regimes and Wage Dispersion," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(6), pages 629-645, December.
    9. Gürtzgen, Nicole, 2005. "Rent-sharing : Does the Bargaining Regime Make a Difference? Theory and Empirical Evidence," ZEW Discussion Papers 05-15, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    10. Christian Pfeifer, 2007. "The Perceived Fairness of Layoffs in Germany: Participation, Compensation, or Avoidance?," Journal of Business Ethics, Springer, vol. 74(1), pages 25-36, August.
    11. Cornelissen, Thomas & Hübler, Olaf, 2005. "Downward Wage Rigidity and Labour Mobility," IZA Discussion Papers 1523, Institute for the Study of Labor (IZA).
    12. Pfeifer, Christian, 2005. "Fairness and the labour market; A theoretical and empirical analysis of layoffs in Germany," Hannover Economic Papers (HEP) dp-328, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    13. Thomas Beissinger & Chritoph Knoppik, 2005. "Sind Nominallöhne starr? Neuere Evidenz und wirtschaftspolitische Implikationen," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 6(2), pages 171-188, May.
    14. Jirjahn, Uwe & Pfeifer, Christian & Tsertsvadze, Georgi, 2006. "Mikroökonomische Beschäftigungseffekte des Hamburger Modells zur Beschäftigungsförderung," IAB Discussion Paper 200625, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Pfeiffer, Friedhelm, 2004. "Ausmaß und Konsequenzen von Lohnrigiditäten," ZEW Discussion Papers 04-13, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:223:y:2003:i:1:p:23-57. 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). General contact details of provider: https://www.degruyter.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.