Rising wage inequality,the decline of collective bargaining,and the gender wage gap

This paper investigates the increase in wage inequality, the decline in collective bargaining, and the evolution of the gender wage gap in West Germany between 2001 and 2006. Based on detailed linked employer–employee data, we show that wage inequality is rising strongly — driven not only by real wage increases at the top of the wage distribution, but also by real wage losses below the median. Coverage by collective wage bargaining plummets by 16.5 (19.1) percentage points for male (female) employees. Despite these changes, the gender wage gap remains almost constant, with some small gains for women at the bottom and at the top of the wage distribution. A sequential decomposition analysis using quantile regression shows that all workplace related effects (firm effects and bargaining effects) and coefficients for personal characteristics contribute strongly to the rise in wage inequality. Among these, the firm coefficients effect dominates, which is almost exclusively driven by wage differences within and between different industries. Labor demand or firm wage policy related effects contribute to an increase in the gender wage gap. Personal characteristics tend to reduce wage inequality for both males and females, as well as the gender wage gap.     

A Multisectoral Econometric Model with Markets for Commodities and Financial Assets

The paper illustrates a multisector econometric model for the Federal Republic of Germany. A new model concept has been realized in two respects. First the model combines a disaggregated real system with a disaggregated monetary system. Second, both systems are disaggregated functionally (commodities) and institutionally (industries). This demands a specific theoretical structure and an appropriate database.; First a synopsis of the theoretical structure of the model is given. Afterwards an ex post solution of the model is discussed, which shows that the system works. Finally a simulation examines which effects a fall of the dollar has on the structure and the level of production and employment in the Federal Republic of Germany.     

International competition between stock exchanges

Stock exchanges are increasingly competing with one another internationally as a result of the globalisation of securities markets. What effect is this trend having on the stock exchanges? What consequences does it have for economic policy?     

Die Liberalisierung des Wohlfahrtsstaates und ihre Herausforderungen für das Pflegemanagement der Zukunft

Heilberufe - Die Liberalisierung des Wohlfahrtsstaates, ausgelöst durch den zunehmend globali sierten Wettbewerb, wird in der Zukunft auch wesentliche Auswirkungen auf die Anforderungen an die...     

Misalignments of real exchange rates and the credibility of nominal currency bands

Misalignments of Real Exchange Rates and the Credibility of Nominal Currency Bands. — This paper analyzes a sticky-price target zone model in which realignment risk is modeled endogenously as a function of the degree of real exchange rate misalignments. The implications of the model are used to investigate the credibility of selected nominal ERM exchange rate bands. We find that a lack of credibility of the ERM currency bands occurs mostly in countries with substantial swings and persistent misalignments of real exchange rates. These findings suggest that the major real appreciations in some European bilateral real exchange rates between 1987 and 1992 have been pivotal in triggering the ERM currency crises of 1992 and 1993.     

Business policies of large and medium-sized German companies in Brazil

Intereconomics - The present article and its conclusions are based on a fundamental study of the differences in business policy displayed by German large and medium-sized companies in Brazil. The...