Cite JOURNAL ARTICLE
Sind Löhne und Preise wirklich inflexibel nach unten?
Eine empirische Analyse für die Bundesrepublik Deutschland, 1952 - 1977
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 100 (1980), Iss. 2 : pp. 111–139
Our empirical test for the Federal Republic of Germany with data for the period 1952 - 77 shows that the hypothesis of asymmetrical wage and price behavior is not supported by the empirical evidence. Of all six good markets under investigation there was not a single one with this alleged asymmetry. With respect to the five labor markets analyzed, only one showed - and only in 50 % of its estimated equations - a sign of asymmetry. These results seem to be valid not only with respect to the wages actually paid but also for the wage rates negotiated between unions and employer organizations. Both react significantly to changes in market conditions and to about the same extent. Another aspect of our findings is that wages seem to react more sensitively to changes in market conditions than prices.