Employment Shocks, Wages and Mobility Some Selected Comparisons between Western Germany and the United States
نویسنده
چکیده
This paper tries an evaluation of west German wage flexibility and mobility of labour in comparison with the United States using micro panel data. Wage regressions and a switching regression model show, that mobility and wages in western Germany react to industrial labour market conditions, while there are no reactions along regional dimensions. In contrast there exist higher degrees of mobility in the United States in both regional and industrial labour markets. Also wages in the U.S. respond to shocks to regional and industrial labour demand. As industrial mobility is higher in the United States, industrial wage respond less to shocks than German wages. Except for west German regional labour market performance, these outcomes correspond to what a competitive model of the labour market would predict. I am grateful to Michael Burda for his comments and support. Many thanks also go to Rolf Tschernig for his comments. This work was in part supported by the German Science Foundation, Sonderforschungsbereich 373 "Quantification and Simulation of Economic Processes", and has been printed using funds made available by the German Science Foundation.
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