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Wage cyclicality and the wage curve under the microscope

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  • Ludsteck, Johannes

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"Using large data sets from the German employment and unemployment register 1985-2004, we investigate aggregate wage cyclicality and the wage curve for establishment stayers and movers. We find that movers' wage responses to aggregate unemployment rate changes exceed these of stayers by about 30-40 percent. A new finding is that the increments of movers over stayer responses to regional unemployment shocks are considerably greater and amount to about 150 percent. This difference in differences (responses to regional compared with aggregate cycles and responses of movers compared with stayers) can be explained by the importance of centralized wage bargaining in Germany." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Ludsteck, Johannes, 2008. "Wage cyclicality and the wage curve under the microscope," IAB Discussion Paper 200811, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:200811
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    References listed on IDEAS

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    Cited by:

    1. Hermann Gartner & Thorsten Schank & Claus Schnabel, 2013. "Wage Cyclicality Under Different Regimes of Industrial Relations," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(2), pages 516-540, April.

    More about this item

    Keywords

    IAB-Beschäftigtenstichprobe; Lohnentwicklung; Lohnkurve; zwischenbetriebliche Mobilität; Arbeitskräftemobilität; Arbeitskräfte; Arbeitslosenquote; regionaler Arbeitsmarkt; Arbeitslosigkeit - Auswirkungen; Westdeutschland; Bundesrepublik Deutschland;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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