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The rise of goods-market competition and the fall of nominal wage contracting: endogenous wage contracting in a multisector economy Author info | Abstract | Publisher info | Download info | Related research | Statistics John V. Duca
David D. VanHoose
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This paper shows how heterogeneity wage-setting and a link between nominal wage flexibility andg goods-market competition rise in a multisector economy that is affected by aggregate and sector-specific shocks. Aggregate volatility increases the variance of real contract wages, whereas sectoral volatility increase the relative variance of real Walrasian wages. Given this tradeoff, the prevalence of nominal wage contracting reflects both the relative volatility of aggregate versus sectoral disturbances and the overall degree of goods-market market competition. We find that these variables help explain the decline in unionization (a proxy for contracting in) the United States.
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Paper provided by Federal Reserve Bank of Dallas in its series Working Papers with number
98-05.
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Date of creation: 1998Date of revision:
Handle: RePEc:fip:feddwp:98-05Contact details of provider: Email: Web page: http://www.dallasfed.org/ More information through EDIRC
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Keywords: Markets ; Wages ; Other versions of this item:
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references 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.)
Joseph P. Daniels & Farrokh Nourzad & David D. VanHoose, 2005.
"Openness, Centralized Wage Bargaining, and Inflation ,"
Working Papers and Research
0505, Marquette University, Department of Economics.
[Downloadable!]
Other versions:
Daniels, Joseph P. & Nourzad, Farrokh & VanHoose, David D., 2006.
"Openness, centralized wage bargaining, and inflation ,"
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Joseph P. Daniels & David D. VanHoose, 2007.
"Openness, Income-Tax Progressivity, and Inflation ,"
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0704, Marquette University, Department of Economics.
[Downloadable!]
Other versions:
Daniels, Joseph P. & VanHoose, David D., 2009.
"Openness, income-tax progressivity, and inflation ,"
Journal of Macroeconomics ,
Elsevier, vol. 31(3), pages 485-491, September.
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