Differences in wage determination in the Eurozone: A challenge to the resilience of the common currency
comunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
comunitat-uji-handle4:
INVESTIGACIONMetadata
Title
Differences in wage determination in the Eurozone: A challenge to the resilience of the common currencyDate
2019-11-22Publisher
Elsevier; The Society for Policy ModelingBibliographic citation
Camarero, M., et al. Differences in wage determination in theEurozone: A challenge to the resilience of the common currency.Journal of Policy Modeling(2019),https://doi.org/10.1016/j.jpolmod.2019.09.006Type
info:eu-repo/semantics/articlePublisher version
https://www.sciencedirect.com/science/article/pii/S0161893819301267#!Version
info:eu-repo/semantics/submittedVersionSubject
Abstract
Different developments in wages and unit labor costs across countries can reduce the synchronization of business cycles within a currency area and therefore be a potential source of asymmetric shocks and/or asymmetric ... [+]
Different developments in wages and unit labor costs across countries can reduce the synchronization of business cycles within a currency area and therefore be a potential source of asymmetric shocks and/or asymmetric response to a common shock. In this paper, we use novel econometric methods to identify differences and similarities in wage determination across Eurozone countries. Results show that wages have different determinants across euro area countries, among which two relatively distinct groups can be identified. In particular, wages in Germany, Austria, Belgium, Luxembourg, the Netherlands and Finland behave more similarly, are less sticky and respond more to macroeconomic conditions than those in the group composed of Italy, Spain, Portugal, France and Ireland. Moreover, the equilibrium wage has been affected by a structural change contemporaneous to the international financial crisis. Finally, structural reforms since the euro crisis have contributed to make labor market structures in Eurozone countries more similar, which contributed to improve the resilience of the Eurozone, but the job is not completed yet. [-]
Rights
© 2019 The Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.
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info:eu-repo/semantics/openAccess
http://rightsstatements.org/vocab/InC/1.0/
info:eu-repo/semantics/openAccess
This item appears in the folowing collection(s)
- IEI_Articles [116]
- ECO_Articles [696]