Focusing on the compression of wage cuts, many empirical studies find a high degree of downward nominal wage rigidity (DNWR). However, the resulting macroeconomic effects seem to be surprisingly weak. This contradiction can be explained within an intertemporal framework in which DNWR not only prevents nominal wage cuts but also induces firms to compress wage increases. We analyze whether a compression ...
This paper addresses the perceived closeness of the relation between East and West German adult children and their parents who no longer live in the same household. The empirical analyses are based on the German Socio‐Economic Panel (GSOEP). They show that East German family relations are closer than West German relations. Regarding the causes for closer or weaker relations for East and West Germans ...