Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/195019 
Year of Publication: 
2017
Citation: 
[Journal:] IZA Journal of European Labor Studies [ISSN:] 2193-9012 [Volume:] 6 [Issue:] 2 [Publisher:] Springer [Place:] Heidelberg [Year:] 2017 [Pages:] 1-16
Publisher: 
Springer, Heidelberg
Abstract: 
This paper assesses the relationship between public and private wages in the EU, as measured by general government and manufacturing compensations, respectively. We find that the long-run relation between the two is stronger when the government is a large employer. Manufacturing compensations are better aligned with productivity and unemployment when general government compensations, to which they generally respond, are set through bargaining. Finally, manufacturing compensations react in the same way whether those in the general government sector are increased or cut, a relation that seems to hold also under fiscal consolidation provided the government is a large employer.
Subjects: 
General government compensations
Wage setting
Cost competitiveness
Fiscal consolidation
Co-integration
JEL: 
C32
E24
E62
H59
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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