The Paper examines real and nominal wage rigidities. We estimate a switching regime model, in which the observed distribution of individual wage changes, computed from West German register data for 1976-97, is generated by simultaneous processes of real, nominal or no wage rigidity, and...

This Paper provides a descriptive analysis of the demand for high-skilled workers using a new firm dataset, the IZA International Employer Survey 2000. Our results suggest that while workers from EU countries are mainly complements to domestic high-skilled workers, workers from non-EU countries...