Ausmaß und Konsequenz von Lohnrigiditäten (Extent and consequences of wage regidities)

"In this paper, the extent and consequences of nominal and negotiated wage rigidities are examined micro-economically and micro-econometrically. The analysis shows that wage rigidities are by no means rare in Germany. They lead to bloated wages and considerable wage increases and, at the limit, to negative employment effects. In comparison to a world of completely flexible wages the annual wage changes are more compressed due to rigidities. A further finding of this study is that there seem to be only few differences, hardly any of them fundamental, between men and women regarding the existence and the consequences of wage rigidities." (Author's abstract, IAB-Doku) ((en))