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Wage Flexibility and Labour Market Institutions: A Meta-Analysis

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Author Info
Miquel Clar
Christian Dreger
Raúl Ramos

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Abstract

Evidence during the nineties about the response of real wages to shocks highlights that this response is substantially lower in European countries than in the United States and that there are important differences among European countries. Which are the reasons that explain these different reactions? In this paper, we apply meta-analytical techniques in order to provide a quantitative summary of the available evidence regarding the influence of labour market institutions on real wage flexibility. We find that the design of the study affects the obtained results, and that in more deregulated labour markets with a lower presence of trade unions, this response is particularly larger. Copyright 2007 Blackwell Publishing Ltd..

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-6435.2007.00366.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Kyklos.

Volume (Year): 60 (2007)
Issue (Month): 2 (05)
Pages: 145-163
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Handle: RePEc:bla:kyklos:v:60:y:2007:i:2:p:145-163

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Magda Kandil, 2006. "Nominal Wage Flexibility and Economic Performance:
    Evidence and Implications Across Industrial Countries
    ," Bulletin of Economic Research, Blackwell Publishing, vol. 58(1), pages 25-49, 01. [Downloadable!] (restricted)
  2. Broersma, Lourens & Den Butter, Frank A G, 2002. "An Explorative Empirical Analysis of the Influence of Labour Flows on Wage Formation," Applied Economics, Taylor and Francis Journals, vol. 34(13), pages 1583-92, September. [Downloadable!] (restricted)
  3. Kamil Galuščák & Daniel Münich, 2005. "Regional Wage Adjustments and Unemployment: Estimating the Time-Varying Wage Curve (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 68-82, January. [Downloadable!]
  4. Juan Duque & Raúl Ramos & Jordi Suriñach, 2006. "Wages and productivity: the role of labour market institutions in OECD countries," Empirica, Springer, vol. 33(4), pages 231-243, September. [Downloadable!] (restricted)
  5. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December. [Downloadable!] (restricted)
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  6. William T. Dickens & Lorenz Goette & Erica L. Groshen & Steinar Holden & Julián Messina & Mark E. Schweitzer & Jarkko Turunen & Melanie E. Ward, 2006. "How Wages Change: Micro Evidence from the International Wage Flexibility Project," IZA Discussion Papers 2487, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Blanchard, Olivier & Katz, Lawrence F, 1997. "What We Know and Do Not Know about the Natural Rate of Unemployment," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 51-72, Winter. [Downloadable!] (restricted)
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  8. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March. [Downloadable!] (restricted)
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  9. Christopher Allsopp & Michael J. Artis, 2003. "The Assessment: EMU, Four Years On," Oxford Review of Economic Policy, Oxford University Press, vol. 19(1), pages 1-29.
  10. Giuseppe Bertola & Francine D. Blau & Lawrence M. Kahn, 2001. "Comparative Analysis of Labor Market Outcomes: Lessons for the US from International Long-Run Evidence," NBER Working Papers 8526, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Peter Nijkamp & Jacques Poot, 2005. "The Last Word on the Wage Curve?," Journal of Economic Surveys, Blackwell Publishing, vol. 19(3), pages 421-450, 07. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kees Folmer, 2009. "Why do macro wage elasticities diverge?," CPB Discussion Papers 122, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  2. Kees Folmer, 2009. "Why do macro wage elasticities diverge?," CPB Memoranda 224, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  3. Philip Du Caju & Catherine Fuss & Ladislav Wintr, 2009. "Understanding sectoral differences in downward real wage rigidity - workforce composition, institutions, technology and competition," Working Paper Series 1006, European Central Bank. [Downloadable!]
    Other versions:
  4. Fabio Rumler & Johann Scharler, 2009. "Labor market institutions and macroeconomic volatility in a panel of OECD countries," Working Paper Series 1005, European Central Bank. [Downloadable!]
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