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Phillips curve or wage curve? Evidence from West Germany, 1980-2004

Phillipskurve oder Lohnkurve? Erkenntnisse aus Westdeutschland, 1980-2004
[working paper]

Baltagi, Badi H.
Blien, Uwe
Wolf, Katja

Corporate Editor
Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB)

Abstract

"This paper reconsiders the West German wage curve using the employment statistics of the Federal Employment Services of Germany (Bundesanstalt für Arbeit) over the period 1980-2004. This updates the earlier study by Baltagi and Blien (1998) by 15 years for a more disaggregated 326 regions of West G... view more

"This paper reconsiders the West German wage curve using the employment statistics of the Federal Employment Services of Germany (Bundesanstalt für Arbeit) over the period 1980-2004. This updates the earlier study by Baltagi and Blien (1998) by 15 years for a more disaggregated 326 regions of West Germany. It is based on a random sample of 417,426 individuals drawn from the population of employees whose establishments are required to report to the social insurance system. We find that the wage equation is highly autoregressive but far from unit root. This means that this wage equation is not a pure Phillips curve, nor a static wage curve, and one should account for wage dynamics. This in turn leads to a smaller but significant unemployment elasticity of -0.02 up to -0.03 rather than the -0.07 reported in the static wage curve results reported by Baltagi and Blien (1998)." (author's abstract)... view less

Keywords
unemployment; quota; wage level; labor market; regional development; Phillips curve; old federal states; Federal Republic of Germany

Classification
Labor Market Research

Method
empirical; quantitative empirical

Document language
English

Publication Year
2007

City
Nürnberg

Page/Pages
17 p.

Series
IAB Discussion Paper: Beiträge zum wissenschaftlichen Dialog aus dem Institut für Arbeitsmarkt- und Berufsforschung, 14/2007

Status
reviewed

Licence
Deposit Licence - No Redistribution, No Modifications

Data providerThis metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne


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© 2007 - 2025 Social Science Open Access Repository (SSOAR).
Based on DSpace, Copyright (c) 2002-2022, DuraSpace. All rights reserved.