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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Main Authors: Bowdler, C, Nunziata, L
Format: Journal article
Language:English
Published: 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.
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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
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