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On wage formation, wage development and flexibility: a comparison between European countries and the United States. DNB Staff Report No. 108/2003

Peeters, Marga and den Reijer, Ard (2003) On wage formation, wage development and flexibility: a comparison between European countries and the United States. DNB Staff Report No. 108/2003. UNSPECIFIED.

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    Abstract

    For Germany, Spain, France, the Netherlands and the US an Error Correction Model with a long-term non-linear wage equation is estimated by 3-SLS to obtain consistent estimates, accounting for endogeneity and common shocks. On the basis of the estimated parameter elasticities of wages with respect to labour productivity, value added and consumer prices, taxes, unemployment and replacement rates are computed along with the wage contributions. The results indicate that the dominant role of prices in the formation of wages in the seventies and eighties was taken over by labour productivity in the US and unemployment in Spain and – almost- in the Netherlands at the end of the nineties. Evidence for a stronger real wage flexibility of the US in comparison with the four European countries is not found.

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    Item Type: Other
    Uncontrolled Keywords: Wage fexibility; labour market.
    Subjects for non-EU documents: Countries > France
    Countries > Germany
    Countries > Netherlands
    Countries > Spain
    EU policies and themes > Policies & related activities > employment/labour market > labour/labor
    EU policies and themes > EU institutions & developments > institutional development/policy > historical development of EC (pre-1986)
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 24 Nov 2011 14:03
    Number of Pages: 37
    Last Modified: 24 Nov 2011 14:03
    URI: http://aei.pitt.edu/id/eprint/32994

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