Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92453
Authors: 
Büttner, Thiess
Year of Publication: 
1995
Series/Report no.: 
Discussion Paper, Center for International Labor Economics (CILE), University of Konstanz 30
Abstract: 
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.
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.