Inflation Adjustment and Labour Market Structures: Evidence from a Multi-country Study.
The impact of labour market structures on the response of inflation to macroeconomic shocks is analysed empirically. Results based on a 20-country panel show that if labour market coordination is high, the effect on inflation of movements in unemployment, import prices, tax rates and productivity is...
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Format: | Journal article |
Language: | English |
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Wiley
2007
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author | Bowdler, C Nunziata, L |
author_facet | Bowdler, C Nunziata, L |
author_sort | Bowdler, C |
collection | OXFORD |
description | The impact of labour market structures on the response of inflation to macroeconomic shocks is analysed empirically. Results based on a 20-country panel show that if labour market coordination is high, the effect on inflation of movements in unemployment, import prices, tax rates and productivity is dampened, both on impact and dynamically. In contrast, monopoly power in labour supply, measured by the percentage unionisation of the workforce, appears to amplify the response of inflation to its reduced-form determinants. These findings are attributed to the behaviour of wages following movements in demand-and supply-side conditions. |
first_indexed | 2024-03-06T19:59:37Z |
format | Journal article |
id | oxford-uuid:26d1bea5-a224-44f2-a714-c2d9077bb326 |
institution | University of Oxford |
language | English |
last_indexed | 2024-03-06T19:59:37Z |
publishDate | 2007 |
publisher | Wiley |
record_format | dspace |
spelling | oxford-uuid:26d1bea5-a224-44f2-a714-c2d9077bb3262022-03-26T12:03:19ZInflation Adjustment and Labour Market Structures: Evidence from a Multi-country Study.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:26d1bea5-a224-44f2-a714-c2d9077bb326EnglishDepartment of Economics - ePrintsWiley2007Bowdler, CNunziata, LThe impact of labour market structures on the response of inflation to macroeconomic shocks is analysed empirically. Results based on a 20-country panel show that if labour market coordination is high, the effect on inflation of movements in unemployment, import prices, tax rates and productivity is dampened, both on impact and dynamically. In contrast, monopoly power in labour supply, measured by the percentage unionisation of the workforce, appears to amplify the response of inflation to its reduced-form determinants. These findings are attributed to the behaviour of wages following movements in demand-and supply-side conditions. |
spellingShingle | Bowdler, C Nunziata, L Inflation Adjustment and Labour Market Structures: Evidence from a Multi-country Study. |
title | Inflation Adjustment and Labour Market Structures: Evidence from a Multi-country Study. |
title_full | Inflation Adjustment and Labour Market Structures: Evidence from a Multi-country Study. |
title_fullStr | Inflation Adjustment and Labour Market Structures: Evidence from a Multi-country Study. |
title_full_unstemmed | Inflation Adjustment and Labour Market Structures: Evidence from a Multi-country Study. |
title_short | Inflation Adjustment and Labour Market Structures: Evidence from a Multi-country Study. |
title_sort | inflation adjustment and labour market structures evidence from a multi country study |
work_keys_str_mv | AT bowdlerc inflationadjustmentandlabourmarketstructuresevidencefromamulticountrystudy AT nunziatal inflationadjustmentandlabourmarketstructuresevidencefromamulticountrystudy |