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ResearchPaper
2010

Real wages and the business cycle in Germany

Abstract (English)

This paper establishes stylized facts about the cyclicality of real consumer wages and real producer wages in Germany. As detrending methods we apply the deterministic trend model, the Beveridge-Nelson decomposition, the Hodrick-Prescott filter, the Baxter-King filter and the structural time series model. The detrended data are analyzed both in the time domain and in the frequency domain. The great advantage of an analysis in the frequency domain is that it allows to assess the relative importance of particular frequencies for the behavior of real wages. In the time domain we find that both real wages display a procyclical pattern and lag behind the business cycle. In the frequency domain the consumer real wage lags behind the business cycle and shows an anticyclical behavior for shorter time periods, whereas for longer time spans a procyclical behavior can be observed. However, for the producer real wage the results in the frequency domain remain inconclusive.

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Notes

Publication license

Publication series

FZID discussion papers; 20

Published in

Faculty
Faculty of Business, Economics and Social Sciences
State Institutes
Institute
Institut für Volkswirtschaftslehre (bis 2010)
Forschungszentrum Innovation und Dienstleistung

Examination date

Supervisor

Edition / version

Citation

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Original object

Standardized keywords (GND)

Sustainable Development Goals

BibTeX

@techreport{Beißinger2010, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5389}, author = {Beißinger, Thomas and Marczak, Martyna}, title = {Real wages and the business cycle in Germany}, year = {2010}, school = {Universität Hohenheim}, series = {FZID discussion papers}, }
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