TY  - RPRT
        AU  - Franz, Wolfgang
AU  - Pfeiffer, Friedhelm
        TI  - Reasons for Wage Rigidity in Germany
        PY  - 2006/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2017
        UR  - https://www.iza.org/publications/dp2017
        AB  - This study investigates institutional and economic reasons for downward wage rigidity regarding three occupational skill groups. Based on a survey of 801 firms in Germany and an econometric analysis, we find strong support for explanations based on the effects of labour union contracts and efficiency wages that differ between skill groups. Survey respondents indicate that labour union contracts and implicit contracts are important reasons for wage rigidity for the (less) skilled. Specific human capital and negative signals for new hires are causes of the stickiness of wages for the highly skilled. Compared with US evidence, German
firms seem to attach more importance to labour union contracts and specific human capital.
        KW  - wage rigidity
KW  - labour union contracts
KW  - efficiency wage theory
KW  - implicit contract theory
KW  - regulation of labour
        ER  -