TY  - RPRT
        AU  - Suedekum, Jens
AU  - Blien, Uwe
        TI  - Wages and Employment Growth: Disaggregated Evidence for West Germany
        PY  - 2004/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1128
        UR  - https://www.iza.org/publications/dp1128
        AB  - We address the effects of wages on employment growth on the basis of a theoretical model
from which cost and demand effects can be derived. In the empirical analysis we take a
highly disaggregated perspective and apply a newly developed shift-share regression
technique on an exhaustive and very accurate data set for West Germany. The regression
shows that the impact of regional wages on employment growth is significantly negative.
There is some variation of this effect across sectors, but in no case we find support for the
claim that an exogenous wage increase leads to higher employment growth.
        KW  - purchasing power argument
KW  - employment growth
KW  - shift-share-analysis
KW  - regional wages
        ER  -