Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142403
Authors: 
Marzinotto, Benedicta
Turrini, Alessandro
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9964
Abstract: 
This paper assesses the relationship between government and manufacturing wages. We find that the long-run relation between the two wages is stronger when the government is a large employer. Manufacturing wages are better aligned with productivity and unemployment when public wages, to which they respond, are set through bargaining. Finally, manufacturing wages react in the same way whether public wages are increased or cut, a relation that seems to hold also under fiscal consolidation provided the public sector is a large employer.
Subjects: 
government wages
wage-setting
cost competitiveness
fiscal consolidation
cointegration
JEL: 
C32
E24
E62
H59
Document Type: 
Working Paper

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