Substantial evidence shows that North Americans are generally more accepting of the market than Europeans and attribute market outcomes to a larger degree to effort or skill. Thus, North Americans might be more accepting of layoffs and pay cuts than Germans, and Germans might be more sensitive...

Theoretical considerations suggest that firms establish consistent internal wage structures and pay wage premiums of similar size across occupational groups. Strong evidence for the existence of coherent employer pay policies across occupations is found using a German employer - employee data...