Macroeconomically oriented wage policies had largely gone out of fashion. Instead, the prevailing view was that wage setting is just another market process comparable to market processes in goods markets. However, these theoretical approaches ignore some fundamental aspects of wage setting. For...

Market driven wage dispersion is a critical feature of income inequality. In this paper especially the Keynesian perspective on how to explain the global trends of rising wage dispersion is elaborated. Special attention is given to the policy implications derived from the analysis. Keynesian...

Labour market developments in Germany can be separated into two major shocks: German reunification in the early 1990s, and the Hartz reforms in the early 2000s. In this paper it is argued that these two shocks divide the German wage bargaining system into the old labour market system, which is...