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Sectoral Wage and Price Formation and Working Time in Germany: An Econometric Analysis

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Franz, W., Smolny, W. Sectoral Wage and Price Formation and Working Time in Germany: An Econometric Analysis. Journal of Contextual Economics – Schmollers Jahrbuch, 114(4), 507-529. https://doi.org/10.3790/schm.114.4.507
Franz, Wolfgang and Smolny, Werner "Sectoral Wage and Price Formation and Working Time in Germany: An Econometric Analysis" Journal of Contextual Economics – Schmollers Jahrbuch 114.4, 1994, 507-529. https://doi.org/10.3790/schm.114.4.507
Franz, Wolfgang/Smolny, Werner (1994): Sectoral Wage and Price Formation and Working Time in Germany: An Econometric Analysis, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 114, iss. 4, 507-529, [online] https://doi.org/10.3790/schm.114.4.507

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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)

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Article Details

Franz, Wolfgang

Smolny, Werner

Cited By

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    Longer Working Hours — The Beginning of a New Trend?

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    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.