Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161280
Authors: 
Gambetti, Luca
Messina, Julián
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10657
Abstract: 
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
Document Type: 
Working Paper
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