Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20875 
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dc.contributor.authorLauer, Charlotteen
dc.date.accessioned2009-01-28T16:17:30Z-
dc.date.available2009-01-28T16:17:30Z-
dc.date.issued1999-
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
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x36en
dc.subject.jelE52en
dc.subject.jelE24en
dc.subject.jelJ20en
dc.subject.ddc330en
dc.subject.keywordEuropean Monetary Unionen
dc.subject.keywordEuroen
dc.subject.keywordwage behaviouren
dc.subject.keywordwage policyen
dc.subject.stwLohnpolitiken
dc.subject.stwWirtschaftliche Anpassungen
dc.subject.stwEuropäische Wirtschafts- und Währungsunionen
dc.subject.stwSchätzungen
dc.subject.stwNiederlandeen
dc.subject.stwDeutschlanden
dc.subject.stwFrankreichen
dc.subject.stwItalienen
dc.subject.stwSpanienen
dc.subject.stwPortugalen
dc.titleThe Effects of European Economic and Monetary Union on Wage Behaviour-
dc.typeWorking Paperen
dc.identifier.ppn830172823en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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