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Do rising labor costs trigger higher inflation?

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Author Info
David A. Brauer
Abstract

The evidence that developments in compensation growth lead overall CPI inflation has thus far been inconclusive. This study, however, sheds new light on the relationship between labor costs and price inflation. By breaking down compensation and prices into their various components, the author finds that compensation growth in the service-producing segment of the private sector can help predict prices for a specific group of services.

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Article provided by Federal Reserve Bank of New York in its journal Current Issues in Economics and Finance.

Volume (Year): (1997)
Issue (Month): Sep ()
Pages:
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Handle: RePEc:fip:fednci:y:1997:i:sep:n:v.3no.11

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Related research
Keywords: Inflation (Finance) ; Labor market ; Wages;

References listed on IDEAS
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  1. Cara S. Lown & Robert W. Rich, 1997. "Is there an inflation puzzle?," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 51-77. [Downloadable!]
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  1. Attilio Zanetti, 2007. "Do Wages Lead Inflation? Swiss Evidence," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(I), pages 67-92, March. [Downloadable!]
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This page was last updated on 2009-12-31.

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