Wages and Employment Growth : Disaggregated Evidence for West Germany

Arbeitspapier

We address the effects of wages on employment growth on the basis of a theoretical model from which cost and demand effects can be derived. In the empirical analysis we take a highly disaggregated perspective and apply a newly developed shift-share regression technique on an exhaustive and very accurate data set for West Germany. The regression shows that the impact of regional wages on employment growth is significantly negative. There is some variation of this effect across sectors, but in no case we find support for the claim that an exogenous wage increase leads to higher employment growth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1128

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
• Subject: employment growth ; shift-share-analysis ; regional wages ; purchasing power argument ; Lohn ; Beschäftigungseffekt ; Einkommenseffekt ; Gesamtwirtschaftliche Nachfrage ; Arbeitskosten ; Regionale Lohnstruktur ; Shift-Share-Analyse ; Schätzung ; Deutschland ; Kaufkraftargument

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Suedekum, Jens ; Blien, Uwe
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/20363
• Last update: 10.03.2025, 11:43 AM CET