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Labour Flows as Determinants of the Wage-Price Spiral: An Empirical Analysis for The Netherlands

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Author Info
Lourens Broersma
Frank A. G. Den Butter

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Abstract

This study presents an empirical analysis of the influence of labour market flows on wage and price formation. A system of wage, price and employment equations after Nickell (Oxford Bulletin of Economics and Statistics 49: 103-128, 1987) is estimated, including labour flows as indicators of labour market tightness in the wage equation. An impulse response analysis using this system shows how changes in the flow of layoffs (flow from employment to unemployment) may be the basis of short‐run Phillips curve effects in The Netherlands Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd 2001.

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Article provided by CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd in its journal Labour.

Volume (Year): 15 (2001)
Issue (Month): 2 (06)
Pages: 279-294
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Handle: RePEc:bla:labour:v:15:y:2001:i:2:p:279-294

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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. David G. Blanchflower & Andrew J. Oswald, 1990. "The Wage Curve," NBER Working Papers 3181, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Burgess, Simon M, 1988. "Employment Adjustment in UK Manufacturing," Economic Journal, Royal Economic Society, vol. 98(389), pages 81-103, March. [Downloadable!] (restricted)
  3. Edmund S. Phelps, 1968. "Money-Wage Dynamics and Labor-Market Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 76, pages 678. [Downloadable!] (restricted)
  4. Daniel S. Hamermesh & Gerard A. Pfann, 1996. "Adjustment Costs in Factor Demand," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1264-1292, September. [Downloadable!] (restricted)
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  5. Manning, Alan, 1993. "Wage Bargaining and the Phillips Curve: The Identification and Specification of Aggregate Wage Equations," Economic Journal, Royal Economic Society, vol. 103(416), pages 98-118, January. [Downloadable!] (restricted)
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  6. Hassink, Wolter & Broersma, Lourens, 1996. "Labour Demand and Job-to-Job Movement," Applied Economics, Taylor and Francis Journals, vol. 28(8), pages 957-65, August. [Downloadable!] (restricted)
  7. Knoester, Anthonie & van der Windt, Nico, 1987. "Real Wages and Taxation in Ten OECD Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(1), pages 151-69, February.
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  1. L. Broersma & Frank A.G. den Butter & Udo Kock, 2003. "A Cointegration Model for Search Equilibrium Wage Formation," Tinbergen Institute Discussion Papers 03-088/3, Tinbergen Institute. [Downloadable!]
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