Details
| Original language | English |
|---|---|
| Title of host publication | Labormetrics |
| Pages | 573-585 |
| Number of pages | 13 |
| ISBN (electronic) | 9783110511680 |
| Publication status | Published - 21 Nov 2016 |
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.
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Business, Management and Accounting(all)
- General Business,Management and Accounting
Sustainable Development Goals
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Labormetrics. 2016. p. 573-585.
Research output: Chapter in book/report/conference proceeding › Contribution to book/anthology › Research › peer review
}
TY - CHAP
T1 - Relative demand and supply of skills and wage rigidity in the United States, Britain, and Western Germany
AU - Puhani, Patrick A.
PY - 2016/11/21
Y1 - 2016/11/21
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85139883193&partnerID=8YFLogxK
M3 - Contribution to book/anthology
AN - SCOPUS:85139883193
SN - 9783110499452
SP - 573
EP - 585
BT - Labormetrics
ER -