Local wages and sectoral wage bargaining in Germany

Arbeitspapier

The peculiarities of the German system of labor relations suggest, that the efficiency wage hypothesis stating an inverse relation between local wages and local unemployment should be related to sectoral wage bargaining on the national level. For that purpose a theoretical model is presented which relates firm specific wages with wage negotiations on a supra-firm level. It is shown that there exists a reasonable bargaining scheme which supports an aggregate wage gap. The model shows a particular nonlinearity of the wage curve, which suggests that there is no influence of unemployment in low wage / high unemployment regions. In the empirical section a wage curve estimation using aggregate data is presented. Although the combined explanation with efficiency and negotiated wages cannot be tested directly, some supporting results are found.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionspapier ; No. 30

Classification and Topics

• Classification: Wirtschaft
• Subject: Regionale Lohnstruktur ; Regionaler Arbeitsmarkt ; Tarifverhandlungen ; Effizienzlohn ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Büttner, Thiess
• Event: Veröffentlichung
• (who): Universität Konstanz, Forschungsschwerpunkt Internationale Arbeitsmarktforschung
• (where): Konstanz
• (when): 1995

Further information

• Handle: http://hdl.handle.net/10419/92453
• Last update: 10.03.2025, 11:45 AM CET