The wage inflation-unemployment curve at the macroeconomic level
Based on the reduced form New Keynesian Wage Phillips Curve, we estimate wage rigidity and indexation at the aggregate level in several advanced countries for the 1985-2014 period. We document that the wage setting process is heterogenous among our sample of countries: nominal wage rigidities are mo...
| Autores: | , |
|---|---|
| Tipo de recurso: | artículo |
| Fecha de publicación: | 2016 |
| País: | España |
| Institución: | Universitat Autònoma de Barcelona |
| Repositorio: | Dipòsit Digital de Documents de la UAB |
| Idioma: | inglés |
| OAI Identifier: | oai:ddd.uab.cat:324131 |
| Acceso en línea: | https://ddd.uab.cat/record/324131 https://dx.doi.org/urn:doi:10.1111/obes.12139 |
| Access Level: | acceso abierto |
| Palabra clave: | Wage rigidity European Union New keynesian Wage Phillips Curve SDG 8 - Decent Work and Economic Growth |
| Sumario: | Based on the reduced form New Keynesian Wage Phillips Curve, we estimate wage rigidity and indexation at the aggregate level in several advanced countries for the 1985-2014 period. We document that the wage setting process is heterogenous among our sample of countries: nominal wage rigidities are more important in the United States, while wage indexation is dominant in European Countries. We also present evidence that indexation to past inflation has decrease as inflation stabilizes at lower levels. In addition, our results suggest that wage rigidity is not linked to the institutional environment at the macroeconomic level. Finally, we show that there is significant time variation in the estimated coefficients on the implied equation that is usually not taken into account in the theoretical literature. |
|---|