IDEAS home Printed from https://ideas.repec.org/p/ecb/ecbops/200890.html

Wage growth dispersion across the euro area countries: some stylised facts

Author

Listed:
  • Pierluigi, Beatrice
  • Vidalis, Nick
  • Andersson, Malin
  • Gieseck, Arne

Abstract

This study presents some stylised facts on wage growth differentials across the euro area countries in the years before and in the first eight years after the introduction of Economic and Monetary Union (EMU) in 1999. The study shows that wage growth dispersion, i.e. the degree of difference in wage growth at a given point in time, has been on a clear downward trend since the early 1980s. However, wage growth dispersion across the euro area countries still appears to be higher than the degree of wage growth dispersion within West Germany, the United States, Italy and Spain. Differences in wage growth rates between individual euro area countries and the euro area in the years before and in the first eight years after the introduction of EMU appear to be positively related to the respective differences between their Harmonised Index of Consumer Prices (HICP) infl ation and average HICP inflation in the euro area. Conversely, relative wage growth differentials across euro area countries have been somewhat unrelated to relative productivity growth differentials. Some countries combine positive wage growth differentials and negative productivity growth differentials vis- JEL Classification: E24, E31, C10

Suggested Citation

  • Pierluigi, Beatrice & Vidalis, Nick & Andersson, Malin & Gieseck, Arne, 2008. "Wage growth dispersion across the euro area countries: some stylised facts," Occasional Paper Series 90, European Central Bank.
    • Handle: RePEc:ecb:ecbops:200890
    Note: 591179
    as

    Download full text from publisher

    File URL: https://www.ecb.europa.eu//pub/pdf/scpops/ecbocp90.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
    2. Leiner-Killinger, Nadine & Madaschi, Christophe & Ward-Warmedinger, Melanie, 2005. "Trends and patterns in working time across euro area countries 1970-2004: causes and consequences," Occasional Paper Series 41, European Central Bank.
    3. Maurice Obstfeld & Giovanni Peri, 1998. "Regional non-adjustment and fiscal policy," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 13(26), pages 206-259.
    4. Dirk Pilat, 1996. "Labour Productivity Levels in OECD Countries: Estimates for Manufacturing and Selected Service Sectors," OECD Economics Department Working Papers 169, OECD Publishing.
    5. Åsa Johansson, 2006. "Wage Setting in Finland: Increasing Flexibility in Centralised Wage Agreements," OECD Economics Department Working Papers 503, OECD Publishing.
    6. Assaf Razin & Chi‐Wa Yuen, 1997. "Factor Mobility and Income Growth: Two Convergence Hypotheses," Review of Development Economics, Wiley Blackwell, vol. 1(2), pages 171-190, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Persson & Fredrik Wilhelmsson, 2016. "EU Trade Preferences and Export Diversification," The World Economy, Wiley Blackwell, vol. 39(1), pages 16-53, January.
    2. Michele Peruzzi & Alessio Terzi, 2018. "Growth Accelerations Strategies," Growth Lab Working Papers 112, Harvard's Growth Lab.
    3. Dennis, Allen & Shepherd, Ben, 2007. "Trade costs, barriers to entry, and export diversification in developing countries," Policy Research Working Paper Series 4368, The World Bank.
    4. Tyrväinen, Timo, 1998. "What do we know about productivity gaps and convergence in EMU economies?," Research Discussion Papers 31/1998, Bank of Finland.
    5. Antoni Estevadeordal & Christian Volpe Martincus, 2006. "Specialization and Diverging Manufacturing Structures: The Aftermath of Trade Policy Reforms in Developing Countries," Development Working Papers 220, Centro Studi Luca d'Agliano, University of Milano.
    6. Sekkat, Khalid, 2016. "Exchange rate misalignment and export diversification in developing countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 59(C), pages 1-14.
    7. Dany Bahar & Hillel Rapoport & Riccardo Turati, 2019. "Does Birthplace Diversity Affect Economic Complexity ? Cross-Country Evidence," LIDAM Discussion Papers IRES 2019020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Kpate ADJAOUTE & Jean-Pierre DANTHINE, 2004. "Equity Returns and Integration: Is Europe Changing?," FAME Research Paper Series rp117, International Center for Financial Asset Management and Engineering.
    9. Muhlis Can & Daniel Balsalobre-Lorente & Festus Fatai Adedoyin & Mehmet Mercan, 2025. "The impact of trade openness, export concentration and economic complexity on energy demand among G7 countries," Energy & Environment, , vol. 36(2), pages 638-659, March.
    10. Joya, Omar, 2015. "Growth and volatility in resource-rich countries: Does diversification help?," Structural Change and Economic Dynamics, Elsevier, vol. 35(C), pages 38-55.
    11. Brulhart, Marius & Traeger, Rolf, 2005. "An account of geographic concentration patterns in Europe," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 597-624, November.
    12. Hailu, Degol & Kipgen, Chinpihoi, 2017. "The Extractives Dependence Index (EDI)," Resources Policy, Elsevier, vol. 51(C), pages 251-264.
    13. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2020. "Crop diversity, household welfare and consumption smoothing under risk: Evidence from rural Uganda," World Development, Elsevier, vol. 125(C).
    14. Goggin, Jean & Siedschlag, Iulia, 2009. "International Transmission of Business Cycles Between Ireland and its Trading Partners," Papers WP279, Economic and Social Research Institute (ESRI).
    15. Emna Trabelsi, 2016. "Transparency on inflation of OECD countries? An Application of LSDVC Estimator on a dynamic Panel Model," Economics Bulletin, AccessEcon, vol. 36(2), pages 1095-1126.
    16. Clement ANNE, 2016. "Are Commodity Price Booms an Opportunity to Diversify? Evidence from Resource-dependent Countries," Working Papers 201615, CERDI.
    17. Laura Resmini, 2003. "Economic integration and regional patterns of industry location in transition countries," ERSA conference papers ersa03p399, European Regional Science Association.
    18. Oleksandr Popov & Sergiy Melnikov & Oleksandr Skachkov & Vasiliy Lyba, 2022. "Assessment of the Level of Economies' Foreign Trade Diversification," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 16(3), September.
    19. repec:dgr:rugggd:gd-83 is not listed on IDEAS
    20. Nouf Alsharif & Sambit Bhattacharyya & Maurizio Intartaglia, 2016. "Economic Diversification in Resource Rich Countries: Uncovering the State of Knowledge," Working Paper Series 09816, Department of Economics, University of Sussex Business School.
    21. Carlo Gianelle & Letizia Montinari & Simone Salotti, 2017. "Interregional Trade, Specialization, and the Business Cycle: Policy Implications for the EMU," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 13(1), pages 1-27, May.

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecb:ecbops:200890. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Official Publications (email available below). General contact details of provider: https://edirc.repec.org/data/emieude.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.