Stagnant German wage structure leads to decline in unskilled employment rates.
The wage structure in West Germany stayed pretty much the same from 1984 to 1997, with little change in pay gaps between different skill levels. This stability was due to rules and systems in place, not just market forces. Even though demand for skilled workers went up, wages didn't shift much, leading to fewer jobs for unskilled workers. This had big effects on things like how much of the economy goes to wages, how much capital is used compared to labor, and overall unemployment rates.