JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Sectoral Wage and Price Formation and Working Time in Germany: An Econometric Analysis
Franz, Wolfgang | Smolny, Werner
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 114 (1994), Iss. 4 : pp. 507–529
1 Citations (CrossRef)
Additional Information
Article Details
Franz, Wolfgang
Smolny, Werner
Cited By
-
Designing the European Model
Longer Working Hours — The Beginning of a New Trend?
Honkapohja, Seppo
Westermann, Frank
2009
https://doi.org/10.1057/9780230236653_6 [Citations: 0]
Abstract
The topic of this paper is a unified framework of sectoral wage and price determination. The theoretical framework is formulated in an extended way which nests several but not mutually exclusive hypotheses of wage and price formation respectively. As a result, an augmented Phillips curve wage model and the mark up price hypothesis are useful concepts for the aggregate and the sectoral wage and price setting. Sectoral wages are influenced by aggregate variables such as the unemployment rate and the rate of capital utilization. The case of strong hysteresis can be rejected in favor of persistence. Finally, workers were, by and large, only partly compensated for the shortened work week.