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The interaction between inflation and unemployment has concerned researchers and politicians for a long time. But is there really a compulsory trade-off between inflation and unemployment? Heiko Stüber pursues this and other questions concerning wage rigidity. The first and major part of the book focuses on downward nominal wage rigidity (DNWR). It provides an overview on causes, extent, and implications of DNWR, deals with the macroeconomic consequences of DNWR, and analyzes whether or not DNWR affects workers differently. The second part of the book deals with real wage rigidity of newly hired workers over the business cycle. It provides a brief overview on previous research and recent developments, and it presents empirical evidence on the cyclicality of real entry-wages in Germany.
List of contents
List of Tables
List of Figures
List of Abbreviations
Acknowledgments
Preamble and Motivation
I Downward Nominal Wage Rigidity
1 Causes, Extent, and Implications of Downward Nominal Wage Rigidity
1.1 The Connection between Inflation, Unemployment, and Downward Nominal Wage Rigidity
1.2 Causes for Downward Nominal Wage Rigidity
1.3 Identification of Downward Nominal Wage Rigidity in Microdata
1.4 Existence and Extent of Downward Nominal Wage Rigidity
1.5 Conclusions
2 Does Downward Nominal Wage Rigidity Dampen Wage Increases?
2.1 The Model
2.2 Data
2.3 Empirical Implementation and Results
2.4 Macroeconomic Implications
2.5 Conclusions
3 Downward Nominal Wage Rigidity in a Cross Section: An Analysis of Linked Employer-Employee Data
for the Years 1995 to 2007
3.1 Methodology, Data, and Data Selection
3.2 Empirical Implementation, Results, and Discussion
3.3 Conclusions
II Real Wage Rigidity
4 Real Wage Rigidity over the Business Cycle - Previous Research and Recent Developments
4.1 Introduction
4.2 Early Research on Real Wage Rigidity
4.3 Recent Developments
5 Real Wage Cyclicality of Newly Hired Workers in Germany
5.1 Previous Empirical Evidence and Methods of Measuring
5.2 Data Description and Data Selection
5.3 Empirical Analysis
5.4 Discussion of the Results
5.5 Conclusions
III Conclusion
6 Concluding Remarks and Outlook
6.1 Downward Nominal Wage Rigidity
6.2 Real Wage Rigidity
Bibliography
Abstract
Kurzfassung
About the author
Heiko Stüber ist wissenschaftlicher Mitarbeiter am Institut für Arbeitsmarkt- und Berufsforschung (IAB) in Nürnberg.
