Structural unemployment and real wage rigidity in Germany:
Saved in:
| Main Author: | |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Tübingen
Mohr Siebeck
1999
|
| Series: | Kieler Studien
301 |
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Item Description: | Literaturverz. |
| Physical Description: | XI, 387 S. graph. Darst. |
| ISBN: | 3161472691 |
Staff View
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Contents
A. Introduction 1
B. Standpoints on Unemployment 7
I. The Traditional Keynesian View: Output Gap 9
II. The Traditional Neoclassical View: Wage Gap 12
III. Modern Views on Unemployment Persistence 32
1. System Dynamics: Hysteresis and Asymmetric Adjustment 32
2. The Economics: Capital Shortage versus Labour Market
Dualization 42
C. Structural Determinants of Unemployment: Some Neglected
Aspects 62
I. Structural Imbalances in Mainstream Theory 62
1. Mismatch and the NAIRU 64
2. Mismatch and the Beveridge Curve 72
3. Alternative Philosophies of Structural Unemployment 78
II. Structural Change and Asymmetric Adjustment: Elements of a
Theory 84
III. The Empirical Evidence 103
1. Structural Change and Unemployment: West Germany
versus the United States 104
2. Structural Change and Employment of Unskilled Labour 114
3. Structural Scars in the Labour Market 120
IV. Summary and Policy Implications 153
D. Real Wage Rigidity in West Germany: Some New Evidence 163
I. The Rigidity of the Wage Structure 163
1. Some Issues of Methodology and Policy 163
2. Two Frameworks for Empirical Analysis 173
VI Contents
3. Interregional Wage Rigidity 180
4. Intersectoral and Interindustrial Wage Rigidity 210
II. Contractual Minimum Wages versus Actual Earnings: Does
Wage Drift Matter? 226
1. The Econometric Framework 226
2. Measurement Problems 230
3. Empirical Results 233
III. The Rigidity of the Wage Level 245
1. Some Conceptual Issues 245
2. The Model 255
3. Empirical Results 262
E. East/West Wage Rigidity in United Germany: Causes and
Consequences 271
I. The Eastern German Labour Market 271
1. Stylized Facts 271
2. The Causes of the Crisis 276
3. The Causes of the Eastern Wage Push 279
II. A Normative Economic Case for East/West Wage
Equalization? 293
1. Meeting the Migration Threat 293
2. Steering Structural Change 294
III. The Long Term Consequences of East/West Wage Equalization 301
IV. Policy Alternatives to Wage Differentiation? 306
1. Employment Subsidies 306
2. Investment Wages 314
F. Keynesian and Neoclassical Economics on Unemployment in
Germany: A Dialogue in the 1990s 316
I. Explaining Unemployment 316
II. Fighting Unemployment 333
III. Eastern German Unemployment 355
Contents VII
Appendix 364
I. Microcensus Classification Scheme of 62 Sectors 364
II. Supplementary Tables A1 and A2 366
III. Summary of Data Sources 368
Bibliography 370
Index 386
List of Tables
Table 1 — Population, Participation Rate, Labour Supply and Employ¬
ment in West Germany, 1950 90 8
Table 2 — The Determinants of Labour Cost in West Germany, 1950
90 27
Table 3 — Dickey Fuller Integration Tests for the Unemployment Rate
in West Germany, 1950 90 40
Table 4 — Share of Regional in Total Unemployment, 1950 91
(various measures) 67
Table 5 — Share of Structural Unemployment MSq for Selected
Parameter Configurations of X and ju 68
Table 6 — Share of Structural Unemployment M5j and MS2 for
Selected Parameter Configurations of Sand £ 77
Table 7 — Share of Structural Unemployment SP( MS3) for Selected
Parameter Configurations of X and ju 83
Table 8 — Employment Growth by Sectors in West Germany, 1950
60, 1960 73 and 1973 90 105
Table 9 — Growth of Dependent Status Employment in Industry,
Services and Government in West Germany and the United
States, 1973 90 110
Table 10 — Employment Growth and Earnings Ratio for Selected
Service Sectors in West Germany and the United States,
1973 88 Ill
Table 11 — Employment of Unskilled and Skilled Labour in Different
Branches of Economic Activity in West Germany, 1973 89 116
Table 12 — Employment of Unskilled and Skilled Labour in Different
Branches of Economic Activity in West Germany, 1976 89 117
Table 13 — Employment of Unskilled Labour by Branches of Economic
Activity in West Germany, 1973 80 and 1980 89 119
Table 14 — Unemployment Rates of Unskilled and Skilled Labour in
West Germany, 1975 90 122
Table 15 — Skill Premia for Workers in Industry in West Germany,
1975 90 125
List of Tables IX
Table 16— Unemployment Rates of Blue Collar Workers (Arbeiter)
and White Collar Workers (Angestellte) in West Germany,
1952 54 and 1966 90 127
Table 17— Premium of White Collar Workers vis a vis Blue Collar
Workers in West Germany, 1966 90 130
Table 18 — Unemployment Rates of German and Foreign Parts of the
Labour Force in West Germany, 1965 90 131
Table 19 — Share of 'Structurally Handicapped' Persons in Long Term
Unemployment in West Germany and the West German
States, 1983 91 135
Table 20 — Estimated Coefficients of a Logit Model on Long Term
Unemployment for West Germany, 1975 91 138
Table 21 — Probability of Long Term Unemployment for Various
Structural Characteristics for West Germany, 1975 91 139
Table 22 — Estimated Coefficients of Beveridge Curves for West
Germany, 1950 90 145
Table 23 — Estimated Coefficients of Beveridge Curves for the West
German States, 1975 90 147
Table 24 — Correlation Matrix of the Trend Shift of the Beveridge
Curve and Various Measures of Employment Growth for
West Germany, 1975 90 148
Table 25 — Selected Measures of Structural Unemployment for
Different Regions in West Germany, 1975 89 152
Table 26 — Selected Tests for Integration of First Order for the West
German States, 1950 90 188
Table 27 — Estimated Coefficients of the Cointegration Model for
Regional Real Wages for the West German States, 1950 90 191
Table 28 — Estimated Coefficients of the Cointegration Model for
Regional Real Wages for the West German States, 1960 90 196
Table 29 — Long Run Coefficients of the Unemployment Variable in
Various Specifications for the West German States, 1950
90 and 1960 90 197
Table 30 — Long Run Effects on the Regional Hourly Wage of a
Doubling in the Regional Labour Market Disequilibrium in
Various Specifications for the West German States, 1950
90 and 1960 90 199
X List of Tables
Table 31 — Degree of Long Run Shock Absorption in Regional Labour
Markets in the West German States, 1960 90 204
Table 32 — Estimated Coefficients of a Time Series Cross Region
Model for Regional Real Wages in West Germany, 1951 90 206
Table 33 — Degree of Long Run Shock Absorption in Regional Labour
Markets in West Germany, 1951 90 209
Table 34 — Estimated Coefficients of Short Run Real Wage Flexibility
in a Cointegration Model for Selected Branches of Manu¬
facturing in West Germany, 1951 90 and 1961 90 214
Table 35 — Estimated Coefficients of a Time Series Cross Section
Model for Industrial Real Wages in West Germany,
1951 90 (Industry statistics) 216
Table 36 — Degree of Short and Medium Run Shock Absorption in
Sectors and Industries in West Germany, 1951 90 219
Table 37 — Estimated Coefficients of Short Run Real Wage Flexibility
in a Cointegration Model for 7 Sectors and 31 Manufac¬
turing Branches in West Germany, 1961 89 222
Table 39 — Estimated Coefficients of a Cointegration Model for Wage
Distance and Wage Drift in Industry in West Germany,
1951 90 235
Table 40 — Degree of Long Run Shock Absorption in Industry Due to
Wage Drift in West Germany, 1951 90 240
Table 41 — Wage Distance and Wage Drift in 25 Branches of
Manufacturing in West Germany, 1951 90 243
Table 42 — Estimated Coefficients of a Cointegration Model for Hourly
Real Wages for West Germany, 1950 90 263
Table 43 — Long Run Coefficients of Unemployment Variables in
Various Specifications and Sample Periods for West
Germany, 1950 90 266
Table 44 — Estimated Coefficients of a Cointegration Model (first step)
for Hourly Real Wages (net of tax) for West Germany,
1950 90 268
Table 45 — Degree of Long Run Shock Absorption in Industry in West
Germany, 1950 90 269
Table 46 — Degree of Long Run Shock Absorption in Industry in West
Germany, 1960 90 269
Table 47 — Underemployment in Eastern Germany, 1990 92 272
List of Tables XI
Table 48 — Employment in Eastern Germany, 1989/IV l 992/1V 274
Table 49 — Changes in Wages and Prices Following the Currency
Union 275
Table 50 — Regional Wage Level as a Share of the West German
Average, 1950 90 289
Table A1 — Employment of Unskilled and Skilled Labour in Different
Branches of Economic Activity in West Germany, 1973 89 366
Table A2 — Employment of Unskilled and of Skilled Labour in Dif¬
ferent Branches of Economic Activity in West Germany,
1976 89 367
List of Figures
Figure 1 — The Rate of Unemployment in West Germany, 1948 90 8
Figure 2 — Unemployment and the Business Cycle in West Germany,
1950 90 11
Figure 3 — Full Employment Labour Cost in the Private Sector in
West Germany, 1950 90 22
Figure 4 — Limits of Full Employment Labour Cost in the Private
Sector in West Germany, 1950 90 23
Figure 5 — Full Employment Labour Cost in Selected Sectors in West
Germany, 1950 89 24
Figure 6 — Full Employment Labour Cost in Industry — Different
Estimates for West Germany, 1950 89 26
Figure 7 — Full Employment Labour Cost in West German Industry
— Different Technologies, 1960 88 31
Figure 8 — The Traditional Phillips Curve 35
Figure 9 — Structural Change in a Two Sector Economy (I) 86
Figure 10 — Structural Change in a Two Sector Economy (II) 87
Figure 11 — Unemployment and the Rise and Decline of Industry in
West Germany, 1950 90 107
Figure 12 — Unemployment and the Decline of Industry in the United
States, 1950 90 109
Figure 13 — 'Beveridge' Natural Rates of Unemployment for the West
German States, 1975 90 150
Figure 14 — Wage Distance and Wage Drift in West Germany, 1951 90 234 |
| any_adam_object | 1 |
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| physical | XI, 387 S. graph. Darst. |
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| series | Kieler Studien |
| series2 | Kieler Studien |
| spelling | Paqué, Karl-Heinz 1956- Verfasser (DE-588)139151575 aut Structural unemployment and real wage rigidity in Germany Karl-Heinz Paqué Tübingen Mohr Siebeck 1999 XI, 387 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier Kieler Studien 301 Literaturverz. Loonvorming gtt Werkloosheid gtt Structural unemployment -- Germany Wages -- Germany Lohnstarrheit (DE-588)4139092-1 gnd rswk-swf Rigidität (DE-588)4178149-1 gnd rswk-swf Strukturelle Arbeitslosigkeit (DE-588)4183791-5 gnd rswk-swf Arbeitslosigkeit (DE-588)4002730-2 gnd rswk-swf Sektoraler Strukturwandel (DE-588)4126823-4 gnd rswk-swf Reallohn (DE-588)4177144-8 gnd rswk-swf Deutschland Deutschland (DE-588)4011882-4 gnd rswk-swf Deutschland (DE-588)4011882-4 g Strukturelle Arbeitslosigkeit (DE-588)4183791-5 s Reallohn (DE-588)4177144-8 s Rigidität (DE-588)4178149-1 s DE-604 Lohnstarrheit (DE-588)4139092-1 s Sektoraler Strukturwandel (DE-588)4126823-4 s Arbeitslosigkeit (DE-588)4002730-2 s DE-188 Kieler Studien 301 (DE-604)BV000001650 301 HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=008668134&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Paqué, Karl-Heinz 1956- Structural unemployment and real wage rigidity in Germany Kieler Studien Loonvorming gtt Werkloosheid gtt Structural unemployment -- Germany Wages -- Germany Lohnstarrheit (DE-588)4139092-1 gnd Rigidität (DE-588)4178149-1 gnd Strukturelle Arbeitslosigkeit (DE-588)4183791-5 gnd Arbeitslosigkeit (DE-588)4002730-2 gnd Sektoraler Strukturwandel (DE-588)4126823-4 gnd Reallohn (DE-588)4177144-8 gnd |
| subject_GND | (DE-588)4139092-1 (DE-588)4178149-1 (DE-588)4183791-5 (DE-588)4002730-2 (DE-588)4126823-4 (DE-588)4177144-8 (DE-588)4011882-4 |
| title | Structural unemployment and real wage rigidity in Germany |
| title_auth | Structural unemployment and real wage rigidity in Germany |
| title_exact_search | Structural unemployment and real wage rigidity in Germany |
| title_full | Structural unemployment and real wage rigidity in Germany Karl-Heinz Paqué |
| title_fullStr | Structural unemployment and real wage rigidity in Germany Karl-Heinz Paqué |
| title_full_unstemmed | Structural unemployment and real wage rigidity in Germany Karl-Heinz Paqué |
| title_short | Structural unemployment and real wage rigidity in Germany |
| title_sort | structural unemployment and real wage rigidity in germany |
| topic | Loonvorming gtt Werkloosheid gtt Structural unemployment -- Germany Wages -- Germany Lohnstarrheit (DE-588)4139092-1 gnd Rigidität (DE-588)4178149-1 gnd Strukturelle Arbeitslosigkeit (DE-588)4183791-5 gnd Arbeitslosigkeit (DE-588)4002730-2 gnd Sektoraler Strukturwandel (DE-588)4126823-4 gnd Reallohn (DE-588)4177144-8 gnd |
| topic_facet | Loonvorming Werkloosheid Structural unemployment -- Germany Wages -- Germany Lohnstarrheit Rigidität Strukturelle Arbeitslosigkeit Arbeitslosigkeit Sektoraler Strukturwandel Reallohn Deutschland |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=008668134&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| volume_link | (DE-604)BV000001650 |
| work_keys_str_mv | AT paquekarlheinz structuralunemploymentandrealwagerigidityingermany |