Description/Abstract
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 period 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.
Document Type
Working Paper
Date
2008
Keywords
Wage curve, regional labor markets, Phillips curve, panel data
Language
English
Series
Working Papers Series
Disciplines
Labor Economics
Recommended Citation
Baltagi, Badi H.; Blien, Uwe; and Wolf, Katja, "New Evidence on the Dynamic Wage Curve for Western Germany: 1980-2004" (2008). Center for Policy Research. 63.
https://surface.syr.edu/cpr/63
Source
Metadata from RePEc
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
Additional Information
Working paper no. 103
Harvest from RePEc at http://repec.org