In this article, the possibility of Nordhaus political wage cycles in the West German
public services during 1961–1995 is investigated. Since wage negotiations are
one might expect a systematically higher wage increase shortly before a federal election.
regression of wage increases from 30 consecutive public sector pay contracts is run
election variable and several additional explanatory variables. The null of no election
is rejected for worker wage increases. The estimated increase in wages due to an
election is predicted to be in the range of 2.5 to 3 percentage points.