Job Movement and Real Wage Flexibility in Eastern and Western Parts of Germany

Peng, Fei; Anwar, Sajid; Kang, Lili

doi:10.1007/s12197-020-09516-6

Cited by 1 publication

(1 citation statement)

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“…These are better suited to local economic conditions (Jung and Schnabel 2011 ). Furthermore, it is often assumed that nominal wages are rigid at the bottom end (Branten et al 2018 ; Peng et al 2020 ) such that there is no corresponding decrease in wages due to an expired collective agreement or when there is no longer a shortage of skilled workers, although positive wage effects might be observed in these situations due to a shortage of skilled labor.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Shortage of Skilled Labor, Unions and the Wage Premium: A Regression Analysis with Establishment Panel Data for Germany

Kölling

2022

J Labor Res

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The author investigates the different influences of labor shortage on wages in firms with or without collective bargaining agreements. In addition to training, technological solutions, and organizational flexibility, employers can also offer higher wages at a constant employment level to fill vacancies if the current payments are lower than the marginal revenue of the workers. Firms with collective bargaining agreements probably already pay wages according to marginal revenue or, in the case of rent sharing, above it, and the remuneration is probably also not adjusted. Using wage regressions with panel data for German establishments, this paper shows that collective bargaining and a lack of skilled workers can lead to higher wages. However, the latter only applies to firms that are not bound by collective agreements. Hence, wage differentials between these firms decrease, providing further explanation for a countercyclical development of the wage premium from the collective bargaining agreement.

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Section: Theory and Hypothesesmentioning

confidence: 99%

Shortage of Skilled Labor, Unions and the Wage Premium: A Regression Analysis with Establishment Panel Data for Germany

Kölling

2022

J Labor Res

View full text Add to dashboard Cite

show abstract

Job Movement and Real Wage Flexibility in Eastern and Western Parts of Germany

Cited by 1 publication

References 71 publications

Shortage of Skilled Labor, Unions and the Wage Premium: A Regression Analysis with Establishment Panel Data for Germany

Shortage of Skilled Labor, Unions and the Wage Premium: A Regression Analysis with Establishment Panel Data for Germany

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