Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146493
Authors: 
Gambetti, Luca
Messina, Julián
Year of Publication: 
2016
Series/Report no.: 
IDB Working Paper Series IDB-WP-715
Abstract: 
This paper examines the evolution of the cyclicality of real wages and employment in four Latin American economies (Brazil, Chile, Colombia and Mexico) during the period 1980-2010. Wages are highly pro-cyclical during the 1980s and early 1990s, a period characterized by high inflation. As inflation declined wages became less pro-cyclical, a feature that is consistent with emerging downward wage rigidities in a low-inflation environment. Compositional effects associated with changes in labor participation along the business cycle appear to matter less for estimates of wage cyclicality than in developed economies.
Subjects: 
Downward wage rigidity
Indexation
Real wage cyclicality
Vector autoregression
Time-varying coefficients
Bayesian estimation
JEL: 
E24
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode
Document Type: 
Working Paper

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