Divergence in labour force growth : should wages and prices grow faster in Germany?

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dc.contributor.authorMarczak, Martynade
dc.contributor.authorHellier, Joëlde
dc.contributor.authorBeißinger, Thomasde
dc.date.accessioned2024-04-08T08:59:42Z
dc.date.available2024-04-08T08:59:42Z
dc.date.created2020-10-20
dc.date.issued2020
dc.description.abstractWe develop a model which shows that wages, prices and real income should grow faster in countries with low increase in their labour force. If not, other countries experience growing unemployment and/or trade deficit. This result is applied to the case of Germany, which has displayed a significantly lower increase in its labour force than its trade partners, except in the moment of the reunification. By assuming that goods are differentiated according to their country of origin (Armington’s hypothesis), a low growth of the working population constrains the production of German goods, which entails an increase in their prices and in German wages. This mechanism is magnified by the low price elasticity of the demand for German goods.Hence,the German policy of wage moderation could severely constrain other countries’ policy options. The simulations of an extended model which encompasses offshoring to emerging countries and labour market imperfections suggest that (i) the impact of differences in labour force growth upon unemployment in Eurozone countries has been significant and (ii) the German demographic shock following unification could explain a large part of the 1995-2005 German economic turmoil.en
dc.identifier.swb1736051105
dc.identifier.urihttps://hohpublica.uni-hohenheim.de/handle/123456789/6545
dc.identifier.urnurn:nbn:de:bsz:100-opus-18114
dc.language.isoeng
dc.relation.ispartofseriesHohenheim discussion papers in business, economics and social sciences; 2020,09
dc.rights.licensepubl-mit-poden
dc.rights.licensepubl-mit-podde
dc.rights.urihttp://opus.uni-hohenheim.de/doku/lic_mit_pod.php
dc.subjectPopulation growthen
dc.subjectLabour forceen
dc.subjectWagesen
dc.subjectGermanyen
dc.subject.ddc330
dc.subject.gndInflationde
dc.subject.gndLohnde
dc.subject.gndBeschäftigungstheoriede
dc.titleDivergence in labour force growth : should wages and prices grow faster in Germany?de
dc.type.dcmiTextde
dc.type.diniWorkingPaperde
local.accessuneingeschränkter Zugriffen
local.accessuneingeschränkter Zugriffde
local.bibliographicCitation.publisherPlaceUniversität Hohenheimde
local.export.bibtex@techreport{Marczak2020, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/6545}, author = {Marczak, Martyna and Hellier, Joël and Beißinger, Thomas et al.}, title = {Divergence in labour force growth : should wages and prices grow faster in Germany?}, year = {2020}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }
local.export.bibtexAuthorMarczak, Martyna and Hellier, Joël and Beißinger, Thomas et al.
local.export.bibtexKeyMarczak2020
local.export.bibtexType@techreport
local.faculty.number3de
local.institute.number520de
local.opus.number1811
local.series.issueNumber2020,09
local.series.titleHohenheim discussion papers in business, economics and social sciences
local.universityUniversität Hohenheimde
local.university.facultyFaculty of Business, Economics and Social Sciencesen
local.university.facultyFakultät Wirtschafts- und Sozialwissenschaftende
local.university.instituteInstitute for Economicsen
local.university.instituteInstitut für Volkswirtschaftslehrede

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