Lohnbildung und Hysteresis | Empirische Überprüfung eines Insider-Outsider Modells für die Bundesrepublik Deutschland

The paper develops a wage-setting model for an insider-dominated monopolistic union. The existence of a stationary policy is proven, according to which wage-setting responds inversely to changes in employment. In contradiction to the Phillips-curve model, this result implies hysteresis effects. It is shown that specific restrictions on the data generating process are imposed by the insider-outsider approach and the Phillips-curve model. These restrictions are tested empirically. Using quarterly data (1962 - 1988) for the Federal Republic of Germany, evidence is found against the Phillips-curve model while the restrictions implied by the hysteresis model are accepted by the data