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Wage Flexibility and Labour Market Institutions: A Meta-Analysis

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Author Info
Miquel Clar () (AQR, University of Barcelona)
Christian Dreger () (DIW Berlin and IZA)
Raúl Ramos () (AQR, University of Barcelona)

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Abstract

Evidence during the nineties about the response of real wages to shocks highlights that this response is substantially lower in European countries than in the United States and that there are important differences among European countries. Which are the reasons that explain these different reactions? In this paper, we apply meta-analytical techniques in order to provide a quantitative summary of the available evidence regarding the influence of labour market institutions on real wage flexibility. We find that the design of the study affects the obtained results, and that in more deregulated labour markets with a lower presence of trade unions, this response is particularly larger.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2581.

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Length: 28 pages
Date of creation: Jan 2007
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Handle: RePEc:iza:izadps:dp2581

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Related research
Keywords: meta analysis wage flexibility institutions

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Find related papers by JEL classification:
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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References listed on IDEAS
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  1. Magda Kandil, 2006. "Nominal Wage Flexibility and Economic Performance:
    Evidence and Implications Across Industrial Countries    ," Bulletin of Economic Research, Blackwell Publishing, vol. 58(1), pages 25-49, 01. [Downloadable!] (restricted)
  2. Broersma, Lourens & Den Butter, Frank A G, 2002. "An Explorative Empirical Analysis of the Influence of Labour Flows on Wage Formation," Applied Economics, Taylor and Francis Journals, vol. 34(13), pages 1583-92, September. [Downloadable!] (restricted)
  3. Kamil Galuščák & Daniel Münich, 2005. "Regional Wage Adjustments and Unemployment: Estimating the Time-Varying Wage Curve (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 68-82, January. [Downloadable!]
  4. Juan Duque & Raúl Ramos & Jordi Suriñach, 2006. "Wages and productivity: the role of labour market institutions in OECD countries," Empirica, Springer, vol. 33(4), pages 231-243, September. [Downloadable!] (restricted)
  5. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December. [Downloadable!] (restricted)
    Other versions:
  6. William T. Dickens & Lorenz Goette & Erica L. Groshen & Steinar Holden & Julián Messina & Mark E. Schweitzer & Jarkko Turunen & Melanie E. Ward, 2006. "How Wages Change: Micro Evidence from the International Wage Flexibility Project," IZA Discussion Papers 2487, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Blanchard, Olivier & Katz, Lawrence F, 1997. "What We Know and Do Not Know about the Natural Rate of Unemployment," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 51-72, Winter. [Downloadable!] (restricted)
    Other versions:
  8. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March. [Downloadable!] (restricted)
    Other versions:
  9. Giuseppe Bertola & Francine D. Blau & Lawrence M. Kahn, 2001. "Comparative Analysis of Labor Market Outcomes: Lessons for the US from International Long-Run Evidence," NBER Working Papers 8526, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Peter Nijkamp & Jacques Poot, 2005. "The Last Word on the Wage Curve?," Journal of Economic Surveys, Blackwell Publishing, vol. 19(3), pages 421-450, 07. [Downloadable!] (restricted)
    Other versions:
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