Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/166014
Authors: 
Björklund, Maria
Carlsson, Mikael
Nordström Skans, Oskar
Year of Publication: 
2016
Series/Report no.: 
Working Paper, IFAU - Institute for Evaluation of Labour Market and Education Policy 2016:13
Abstract: 
We study the importance of wage rigidities for the monetary policy transmission mechanism. Using uniquely rich micro data on Swedish wage negotiations, we isolate periods when the labor market is covered by fixed wage contracts. Importantly, negotiations are coordinated in time but their seasonal patterns are far from deterministic. Using a VAR model, we document that monetary policy shocks have a substantially larger impact on production during fixed wage episodes as compared to the average response. The results are not driven by the periodic structure, nor the seasonality, of the renegotiation episodes.
Subjects: 
monetary policy
wages
nominal rigidities
micro data
JEL: 
E23
E24
E58
J41
Document Type: 
Working Paper

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