The role of Institutions in explaining wage determination in the Euro Area: a panel cointegration approach
comunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
comunitat-uji-handle4:
INVESTIGACIONMetadatos
Título
The role of Institutions in explaining wage determination in the Euro Area: a panel cointegration approachFecha de publicación
2016-03Editor
WileyCita bibliográfica
CAMARERO, Mariam; D'ADAMO, Gaetano; TAMARIT, Cecilio. The role of Institutions in explaining wage determination in the Euro Area: a panel cointegration approach. International Labour Review (2016), v. 155, n. 1, pp. 25-56Tipo de documento
info:eu-repo/semantics/articleVersión de la editorial
http://onlinelibrary.wiley.com/doi/10.1111/ilr.12004/fullVersión
info:eu-repo/semantics/acceptedVersionPalabras clave / Materias
Resumen
Over the last 15 years, the evolution of labor costs has been very diverse across EMU
countries. Since wages have important second-round effects on prices and
competitiveness, and EMU countries do not have the tool ... [+]
Over the last 15 years, the evolution of labor costs has been very diverse across EMU
countries. Since wages have important second-round effects on prices and
competitiveness, and EMU countries do not have the tool of the nominal exchange rate
to correct for such imbalances, understanding the determinants of the wage is a
matter of increasing concern and debate. We estimate the equilibrium wage equation
for the Euro Area over the period 1995-2011 using panel cointegration techniques
that allow for cross-section dependence and structural breaks. The results show that
the equilibrium wage has a positive relation with productivity and negative relation
with unemployment, as expected. We also include institutional variables in our
analysis, showing that a more flexible labor market is consistent with long-run wage
moderation. Allowing for a regime break, we find that, since 2004, possibly due to
increased international competition, wage determination was more strictly related to
productivity, and real wage appreciation triggers a drop in the real wage.
Furthermore, results point to a wage-moderating role of government intervention and
concertation in wage bargaining. [-]
Publicado en
International Labour Review (2016), v. 155, n. 1Derechos de acceso
http://rightsstatements.org/vocab/CNE/1.0/
info:eu-repo/semantics/openAccess
info:eu-repo/semantics/openAccess
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