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Inflation Adjustment and Labour Market Structures: Evidence from a Multi-country Study Author info | Abstract | Publisher info | Download info | Related research | Statistics Christopher Bowdler
Luca Nunziata
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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. Copyright The editors of the "Scandinavian Journal of Economics" 2007 .
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Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics .
Volume (Year): 109 (2007)
Issue (Month): 3 (09)
Pages: 619-642
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Handle: RePEc:bla:scandj:v:109:y:2007:i:3:p:619-642Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0347-0520
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