Wages and International Price Competitiveness: Germany vs U.K
The standard bargaining model predicts that falling international price competitiveness should exert downward pressure on wages, in addition to the effect of current unemployment. Cointegration results with aggregate British and German data confirm the model for the U.K., but fail to reveal an effect on Germany's apparently declining competitiveness on wage growth. Some tentative explanations are offered.
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|Date of creation:||Oct 1996|
|Date of revision:|
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