We develop a model which shows that wages, prices and real income should grow faster in countries with low increase in their labour force. If not, other countries experience growing unemployment and/or trade deficit. This result is applied to the case of Germany, which has displayed a...

We propose a novel framework that integrates the "task approach" for a more precise production modeling into the search-and-matching model with low- and high-skilled workers, and wage setting by labor unions. We establish the relationship between task reallocation and changes in wage pressure,...

This article establishes stylized facts about the cyclicality of real consumer wages and real producer wages in Germany. As detrending methods, we apply the Beveridge–Nelson decomposition, the Hodrick–Prescott filter, the Baxter–King filter, and the structural time series model. The...