Guntram B. Wolff, (2017), “German wages, the Phillips curve and migration in the euro area”, Bruegel, 29 November
This post studies why wages in Germany have not borne strong increases despite a relatively strong labour market. I list four reasons why announcing the death of the Phillips curve – the negative relationship between unemployment and wage growth – is premature in Germany. One of the reasons I report is substantial immigration from the rest of the EU.
Relevant Posts
- Silvia Merler, (2017), «Has the Phillips curve disappeared?», Bruegel, 21 November
- Russell Cooper, Moritz Meyer, Immo Schot, (2017), «The employment and output effects of short-time work in Germany», VoxEU, 28 October