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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 Nunziata, Luca () (Nuffield College, Oxford, University of Milan and IZA Bonn)
Bowdler, Christopher (Nuffield College, Oxford)
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An empirical analysis of the impact of labour market structures on the response of inflation to macroeconomic shocks is presented. 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.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
1510.
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Length: 27 pages
Date of creation: Mar 2005Date of revision:
Handle: RePEc:iza:izadps:dp1510Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany Phone: +49 228 3894 223 Fax: +49 228 3894 180 Web page: http://www.iza.org
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Keywords: inflation ; input price shocks ; labour market coordination ; trade union density ; Other versions of this item:
Find related papers by JEL classification: E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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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.)
Roger Bjørnstad and Kjartan Øren Kalstad, 2006.
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Christopher Bowdler & Luca Nunziata, 2005.
"Trade union density and inflation performance: evidence from OECD panel data ,"
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