Richard B. Freeman
Skill compression, wage differentials, and employment: Germany vs the US
germanys compressed wage structure widely viewed main cause germanus difference employment unemployment part compression due germany narrower distribution skills us even adjusted skills however find germany compressed wage distribution us relatively little usgerman employment difference attributed compressed wage distribution find jobless germans nearly skills employed germans look like average americans like low skilled americans runs counter wage compression hypothesis given patterns pay employment experience low skilled americans poor counterfactual assessing reductions pay might affect jobless germans