Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Postersession P00-V6
High and rigid wages are a threat for employment, especially for older workers. While wage levels of job stayers in many countries are not decreasing in late working life, little is known about the evolution of wage flexibility over the lifecycle. Using the German LIAB data set, this paper investigates the age pattern of wage flexibility with respect to permanent and transitory shocks to firm productivity. Works councils are found to have an important effect on wage flexibility of older workers.