Relative demand and supply of skills and wage rigidity in the United States, Britain, and Western Germany

verfasst von

Patrick A. Puhani

Abstract

I extend a two-skill group model by Katz and Murphy (1992) to estimate relative demand and supply for skills as well as wage rigidity in Germany. Using three data sets for Germany, two for Britain and one for the United States, I simulate the change in relative wage rigidity (wage compression) in all three countries during the early and mid 1990s, this being the period when unemployment increased in Germany but fell in Britain and the US. I show that in this period, Germany experienced wage compression (relative wage rigidity), whereas Britain and the US experienced wage decompression. This evidence is consistent with the Krugman (1994) hypothesis.

Organisationseinheit(en)

Institut für Arbeitsökonomik

Typ

Beitrag in Buch/Sammelwerk

Seiten

573-585

Anzahl der Seiten

13

Publikationsdatum

21.11.2016

Publikationsstatus

Veröffentlicht

Peer-reviewed

Ja

ASJC Scopus Sachgebiete

Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.), Allgemeine Unternehmensführung und Buchhaltung

Ziele für nachhaltige Entwicklung

SDG 8 – Anständige Arbeitsbedingungen und wirtschaftliches Wachstum