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Wage Dispersion in Germany and the US: Is There Compression from Below?

In: Innovation, Employment and Growth Policy Issues in the EU and the US

Author

Listed:
  • Joachim Möller

    (University of Regensburg)

Abstract

The reasons behind the opening up of striking differences in labor market performance between the US and (continental) European countries since the seventies are still open to debate. Many observers blame European labor market rigidities for the employment gap. According to the standard view the USA is the shining example of flexibility and freedom of the market, while Germany and France are bulwarks of institutional rigidities, high union coverage and comfortable welfare states floors. With respect to the wage structure it is presumed that continental European countries are characterized by much less differentiation compared to the US. The deformation of the wage distribution is considered to be one of the main reasons for the labor market crisis especially in Germany.

Suggested Citation

  • Joachim Möller, 2009. "Wage Dispersion in Germany and the US: Is There Compression from Below?," Springer Books, in: Paul J.J. Welfens & John T. Addison (ed.), Innovation, Employment and Growth Policy Issues in the EU and the US, chapter 0, pages 41-59, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-00631-9_2
    DOI: 10.1007/978-3-642-00631-9_2
    as

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