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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...
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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...
Persistent link: https://www.econbiz.de/10005212742
"The flexibility of European labour markets is widely discussed by researchers and politicians. To explore the reactions of wages to regional unemployment for the first time data from a national representative survey of establishments (the IAB Establishment Panel) has been used. The results...
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