Making wages flexible – a panacea of employment policy?
Author: Kurt Vogler-Ludwig
Publisher: Ifo Schnelldienst 16
Year: 1985
Language: German
Sectoral and qualification-related wage relations are inflexible in the short term, however adjust to sector-specific conditions in the long-term. A further flexibilisation does not make sense as it has the effect of subsidies of weak sectors which finally reduces productivity and GDP growth.