On behalf of the European Foundation for the Improvement of Living and Working Conditions, the Cologne Institute for Economic Research analysed the wage trends in Germany (2006-2010). The study shows that despite the tremendous drop in the volume of incoming orders and production, particularly in manufacturing, the impact of the crisis on wages was, on average, very moderate. Between 2008 and 2009 average gross annual earnings in manufacturing declined by only 3.6% whereas production fell by nearly 20%. Where negative wage trends occurred they resulted mainly from the application of short-time work or the reduction of paid overtime. Survey data also suggest that the diverging trend in the earnings distribution has come to a halt.
Evolution of Wages during the Crisis
German Economic Institute (IW)
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