Bellmann, Lutz; Blien, Uwe - In: Industrial and Labor Relations Review 54 (2001) 4, pp. 851-863
Using the IAB Establishment Panel, which is representative for western Germany, the authors find that establishment-level wages reacted to variations in the regional unemployment rate. The elasticity of wages with respect to unemployment, they estimate, was about -0.1. This responsiveness of the...