Year: 1991
Author: Möller, Joachim, Völker, Rainer
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 111 (1991), Iss. 3 : pp. 401–424
Abstract
The paper develops a wage-setting model for an insider-dominated monopolistic union. The existence of a stationary policy is proven, according to which wage-setting responds inversely to changes in employment. In contradiction to the Phillips-curve model, this result implies hysteresis effects.
It is shown that specific restrictions on the data generating process are imposed by the insider-outsider approach and the Phillips-curve model. These restrictions are tested empirically. Using quarterly data (1962 - 1988) for the Federal Republic of Germany, evidence is found against the Phillips-curve model while the restrictions implied by the hysteresis model are accepted by the data.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.111.3.401
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 111 (1991), Iss. 3 : pp. 401–424
Published online: 1991-03
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 24