Wages and Employment Across Skill Groups

Investigates whether West German unemployment is due to a lack of wage flexibility. The skill bias in the labour market seems to offer only two choices: greater... » 

Investigates whether West German unemployment is due to a lack of wage flexibility. The skill bias in the labour market seems to offer only two choices: greater wage inequality or higher unemployment. Whether and how this theory is consistent with the experience of West Germany is examined closely. «