Wages and Employment Across Skill Groups

An Analysis for West Germany

  • BerndĀ Fitzenberger

Part of the ZEW Economic Studies book series (ZEW, volume 6)

Table of contents

  1. Front Matter
    Pages I-XI
  2. Bernd Fitzenberger
    Pages 1-12
  3. Bernd Fitzenberger
    Pages 31-86
  4. Bernd Fitzenberger
    Pages 87-117
  5. Bernd Fitzenberger
    Pages 119-173
  6. Bernd Fitzenberger
    Pages 175-207
  7. Bernd Fitzenberger
    Pages 209-211
  8. Back Matter
    Pages 213-251

About this book


This book explores empirically for West Germany whether a decline in the relative demand for less skilled workers resulted in increased unemployment. Using up-to-date econometric techniques, a balanced mixture between descriptive evidence and structural estimation is provided, and there are various findings in the book which require a modification of the conventional wisdom about labor market trends in West Germany. Overall wage dispersion has been increasing and wage growth has been higher for low-skilled and high-skilled workers compared to the medium skill group. A skill bias in labor demand trends is found and higher wage flexibility could have alleviated the dispersion in unemployment rates across skill groups. The main driving force appears to be technological progress, however, the evidence is also consistent with international trade causing a deterioration in the labor market position of low-skilled workers. With regard to wage bargaining, evidence for a short-run, but not for a long-run, moderation of wage demands is found in the presence of a negative labor demand shock.


Arbeitslosigkeit Arbeitsmarkt Employment Labour Economics Simulation labor market unemployment

Authors and affiliations

  • BerndĀ Fitzenberger
    • 1
  1. 1.Department of EconomicsDresden University of TechnologyDresdenGermany

Bibliographic information

  • DOI
  • Copyright Information Physica-Verlag Heidelberg 1999
  • Publisher Name Physica, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-7908-1235-0
  • Online ISBN 978-3-642-58687-3
  • Series Print ISSN 1615-6781
  • Series Online ISSN 1867-2027
  • Buy this book on publisher's site