REAL WAGE CYCLICALITY IN GERMANY AND THE UK: NEW RESULTS USING PANEL DATA (2011) (original) (raw)

This research investigates real wage adjustments in relation to business cycles in Germany and the UK, focusing on how wage-setting institutions affect these adjustments. It highlights the contrast between the UK and Germany, particularly in terms of wage coordination and its implications for employment and wage flexibility. The findings suggest that Germany's coordinated wage-setting system may provide advantages over the more fragmented system in the UK, leading to different patterns of real wage sensitivity and unemployment outcomes.