New Evidence on the Dynamic Wage Curve for Western Germany: 1980-2004
Blanchflower and Oswald (1994) reported that they have found an 'empirical law of economics'--the Wage Curve. Our paper reconsiders the western German Wage Curve using disaggregated regional data and is based on almost one million employees drawn from the Federal Employment Services of Germany over the eriod 1980-2004. We find that the wage equation is highly autoregressive but far from unit root. The unemployment elasticity is significant but relatively small: only between -0.02 and -0.04. We also check the sensitivity of this elasticity for different population groups (young versus old, men versus women, less educated versus highly educated, German native versus foreigner), confirming that it is stronger the weaker the bargaining power of the particular group.
|Date of creation:||Mar 2008|
|Contact details of provider:|| Postal: 426 Eggers Hall, Syracuse, New York USA 13244-1020|
Phone: (315) 443-3114
Fax: (315) 443-1081
Web page: http://www.maxwell.syr.edu/cpr.aspx
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
- Víctor M. Montuenga-Gómez & José M. Ramos-Parreño, 2005. "Reconciling the Wage Curve and the Phillips Curve," Journal of Economic Surveys, Wiley Blackwell, vol. 19(5), pages 735-765, December.
- Bell, Brian & Nickell, Stephen & Quintini, Glenda, 2002.
"Wage equations, wage curves and all that,"
Elsevier, vol. 9(3), pages 341-360, July.
- Brian Bell & Stephen Nickell & Glenda Quintini, 2000. "Wage equations, wage curves and all that," LSE Research Online Documents on Economics 20165, London School of Economics and Political Science, LSE Library.
- B Bell & Stephen Nickell & Glenda Quintini, 2000. "Wage Equations, Wage Curves and All That," CEP Discussion Papers dp0472, Centre for Economic Performance, LSE.
- Baltagi, Badi H. & Blien, Uwe, 1998. "The German wage curve: evidence from the IAB employment sample," Economics Letters, Elsevier, vol. 61(2), pages 135-142, November.
- Olivier Blanchard & Lawrence F. Katz, 1996.
"What We Know and Do Not Know About the Natural Rate of Unemployment,"
NBER Working Papers
5822, National Bureau of Economic Research, Inc.
- Olivier Blanchard & Lawrence F. Katz, 1997. "What We Know and Do Not Know about the Natural Rate of Unemployment," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 51-72, Winter.
- Blanchard, O & Katz, L, 1996. "What We Know and Do Not Know about the Natural Rate of Unemployment," Working papers 96-29, Massachusetts Institute of Technology (MIT), Department of Economics.
- Ammermüller, Andreas & Lucifora, Claudio & Origo, Federica & Zwick, Thomas, 2007.
"Still Searching for the Wage Curve: Evidence from Germany and Italy,"
IZA Discussion Papers
2674, Institute for the Study of Labor (IZA).
- Ammermüller, Andreas & Lucifora, Claudio & Origo, Federica & Zwick, Thomas, 2007. "Still searching for the wage curve: evidence from Germany and Italy," ZEW Discussion Papers 07-008, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Peter Nijkamp & Jacques Poot, 2005.
"The Last Word on the Wage Curve?,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 19(3), pages 421-450, 07.
- Thiess Buettner, 1999. "The effect of unemployment, aggregate wages, and spatial contiguity on local wages: An investigation with German district level data," Papers in Regional Science, Springer;Regional Science Association International, vol. 78(1), pages 47-67.
- Blanchflower, David G & Oswald, Andrew J, 1994. "Estimating a Wage Curve for Britain: 1973-90," Economic Journal, Royal Economic Society, vol. 104(426), pages 1025-1043, September.
- David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
- Blanchflower, David G. & Oswald, Andrew J., 2005.
"The Wage Curve Reloaded,"
IZA Discussion Papers
1665, Institute for the Study of Labor (IZA).
- Markus Pannenberg & Johannes Schwarze, 2000. "Wage Dynamics and Unemployment in Germany: Evidence from Regional Panel Data," LABOUR, CEIS, vol. 14(4), pages 645-655, December.
- David Card, 1995.
"The Wage Curve: A Review,"
722, Princeton University, Department of Economics, Industrial Relations Section..
- Lutz Bellmann & Uwe Blien, 2001. "Wage Curve Analyses of Establishment Data from Western Germany," ILR Review, Cornell University, ILR School, vol. 54(4), pages 851-863, July.
- Robert J. Flanagan, 1999. "Macroeconomic Performance and Collective Bargaining: An International Perspective," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1150-1175, September.
- André Sapir, 1995. "Introduction," The World Economy, Wiley Blackwell, vol. 18(6), pages 741-744, November.
- repec:pri:indrel:dsp01pn89d659s is not listed on IDEAS
- repec:fth:prinin:343 is not listed on IDEAS
- Wagner, Joachim, 1994. "German wage curves, 1979-1990," Economics Letters, Elsevier, vol. 44(3), pages 307-311.
When requesting a correction, please mention this item's handle: RePEc:max:cprwps:103. 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: (Kelly Bogart)or (Katrina Wingle)
If references are entirely missing, you can add them using this form.