Details
| Original language | English |
|---|---|
| Pages (from-to) | 573-585 |
| Number of pages | 13 |
| Journal | Jahrbucher fur Nationalokonomie und Statistik |
| Volume | 228 |
| Issue number | 5-6 |
| Publication status | Published - Dec 2008 |
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.
Keywords
- Earnings, Non-employment, Rigidity, Unemployment, Wage
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- General Business,Management and Accounting
- Social Sciences(all)
- Social Sciences (miscellaneous)
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
Sustainable Development Goals
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In: Jahrbucher fur Nationalokonomie und Statistik, Vol. 228, No. 5-6, 12.2008, p. 573-585.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Relative demand and supply of skills and wage rigidity in the United States, Britain, and Western Germany
AU - Puhani, Patrick A.
PY - 2008/12
Y1 - 2008/12
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.
KW - Earnings
KW - Non-employment
KW - Rigidity
KW - Unemployment
KW - Wage
UR - http://www.scopus.com/inward/record.url?scp=62449138218&partnerID=8YFLogxK
U2 - 10.1515/jbnst-2008-5-610
DO - 10.1515/jbnst-2008-5-610
M3 - Article
AN - SCOPUS:62449138218
VL - 228
SP - 573
EP - 585
JO - Jahrbucher fur Nationalokonomie und Statistik
JF - Jahrbucher fur Nationalokonomie und Statistik
SN - 0021-4027
IS - 5-6
ER -