Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153437
Authors: 
Messina, Julián
Strozzi, Chiara
Turunen, Jarkko
Year of Publication: 
2009
Series/Report no.: 
ECB Working Paper 1003
Abstract: 
We study differences in the adjustment of aggregate real wages in the manufacturing sector over the business cycle across OECD countries, combining results from different data and dynamic methods. Summary measures of cyclicality show genuine cross-country heterogeneity even after controlling for the impact of data and methods. We find that more open economies and countries with stronger unions tend to have less pro-cyclical (or more counter-cyclical) wages. We also find a positive correlation between the cyclicality of real wages and employment, suggesting that policy complementarities may influence the adjustment of both quantities and prices in the labour market.
Subjects: 
business cycle
dynamic correlation
Labour market institutions
real wages
JEL: 
E32
J30
C10
Document Type: 
Working Paper

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