Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/96396
Authors: 
Herr, Hansjörg
Horn, Gustav A.
Year of Publication: 
2012
Series/Report no.: 
Global Labour University Working Paper 16
Abstract: 
Macroeconomically oriented wage policies had largely gone out of fashion. Instead, the prevailing view was that wage setting is just another market process comparable to market processes in goods markets. However, these theoretical approaches ignore some fundamental aspects of wage setting. For example, no account at all is taken of the overall economic dimension of wages. And yet, through its impacts on income and distribution, wage setting has a direct influence on domestic demand and price levels. Since the launch of European Monetary Union (EMU), a further significant macroeconomic aspect has been added. The abolition of exchange rates has raised the problem of structural trade imbalances as a result of different competitive conditions in the national economies of the individual Member States. Wages are a major factor here. The following paper develops a wage policy concept that takes account of all these elements.
Subjects: 
wage policy
wages
labour cost
EMU
France
Germany
Italy
Spain
Document Type: 
Working Paper

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