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

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  • 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
    DOI: 10.1515/jbnst-2003-0103
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    Cited by:

    1. 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.
    2. 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].
    3. 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.
    4. Johannes Gernandt & Friedhelm Pfeiffer, 2006. "Einstiegslöhne bei unvollkommenen Arbeitsmärkten," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 147-172, May.
    5. 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.
    6. Cornelissen, Thomas & Hübler, Olaf, 2005. "Downward Wage Rigidity and Labour Mobility," IZA Discussion Papers 1523, Institute of Labor Economics (IZA).
    7. 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.
    8. Hagen Lesch & Wernhard Möschel & Claus Schnabel & Martin Kannegiesser & Friedhelm Pfeiffer & Reinhard Bispinck & Hartmut Seifert, 2004. "Single-plant bargaining versus collective agreements," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(03), pages 3-23, February.
    9. 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.
    10. 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.
    11. 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.
    12. Pfeiffer, Friedhelm, 2004. "Ausmaß und Konsequenzen von Lohnrigiditäten," ZEW Discussion Papers 04-13, ZEW - Leibniz Centre for European Economic Research.
    13. 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.
    14. Gürtzgen, Nicole, 2005. "Rent-sharing : Does the Bargaining Regime Make a Difference? Theory and Empirical Evidence," ZEW Discussion Papers 05-15, ZEW - Leibniz Centre for European Economic Research.
    15. 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.

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