Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20875
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dc.contributor.authorLauer, Charlotteen_US
dc.date.accessioned2009-01-28T16:17:30Z-
dc.date.available2009-01-28T16:17:30Z-
dc.date.issued1999en_US
dc.identifier.urihttp://hdl.handle.net/10419/20875-
dc.description.abstractThis paper evaluates the possible consequences of the forthcoming European and MonetaryUnion on wage behaviour. It will be shown that EMU does not influence wage policy directly,but rather indirectly through its implications on other areas of economic policy, predominantlyon monetary policy. Consequently, EMU will put increasing pressure on using wage policyas a flexible adjustment variable, since other adjustment mechanisms shall cease to exist.Six European countries were analysed empirically, which showed that in the past, southernEuropean countries conducted a much more expansive wage policy than northern Europeancountries. However, this competitive disadvantage of the southern countries was more thancompensated by exchange rate developments. What will happen when EMU has come intoeffect? Either fewer devaluation possibilities within EMU will lead to a shift in competitivepositions in favour of the northern countries, or a change in wage behaviour will beobserved. The descriptive analysis shows that, on the eve of EMU, wage policy has becomemore moderate. This trend could be accelerated by the arrival of EMU. The econometricanalysis provides an argument for this: the stability of exchange rates have been proven tohave a dampening effect on wage increases in the past, particularly in southern Europeancountries. Whether the extent of these effects will be sufficient to prevent a shift in relativecompetitive positions, however, remains to be seen.en_US
dc.language.isoengen_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aIZA Discussion paper series |x36en_US
dc.subject.jelE52en_US
dc.subject.jelE24en_US
dc.subject.jelJ20en_US
dc.subject.ddc330en_US
dc.subject.keywordEuropean Monetary Unionen_US
dc.subject.keywordEuroen_US
dc.subject.keywordwage behaviouren_US
dc.subject.keywordwage policyen_US
dc.subject.stwLohnpolitiken_US
dc.subject.stwWirtschaftliche Anpassungen_US
dc.subject.stwEuropäische Wirtschafts- und Währungsunionen_US
dc.subject.stwSchätzungen_US
dc.subject.stwNiederlandeen_US
dc.subject.stwDeutschlanden_US
dc.subject.stwFrankreichen_US
dc.subject.stwItalienen_US
dc.subject.stwSpanienen_US
dc.subject.stwPortugalen_US
dc.titleThe Effects of European Economic and Monetary Union on Wage Behaviouren_US
dc.typeWorking Paperen_US
dc.identifier.ppn830172823en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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