IDEAS home Printed from https://ideas.repec.org/p/ekd/002672/4145.html
   My bibliography  Save this paper

Unit Labour Costs And Prices: A Sectorial Causality Analysis For The Spanish Regions

Author

Listed:
  • Mª Ángeles Caraballo
  • Francisco Gómez García
  • Eva Buitrago Esquinas

Abstract

The aim of this paper is to carry out a sectorial causality analysis between prices and unit labour costs for the Spanish regions. In order to achieve our goal, we have developed our own database for the unit labour costs (ULC). It includes data for Spain and five of its regions: Andalusia, Cantabria, Extremadura, Navarra and the Basque Country, over the period 2000.I-2010.IV. The relationship between prices and ULC has been estimated within the framework of the mark-up model applying cointegration techniques. Based on the estimated model, we analyse the short and long run causality. Our results suggest that, in the long-run, causality runs from unit labour costs (ULC) to prices, but in the short-run this result doesn’t hold, actually in some cases the direction of causality reverses. More precisely, in regard to services, the results are very different depending on the regions. As far as the industry is concerned, there is growing evidence that the ULC are causing the prices. And, on the contrary, the results for the construction sector show that the prices are causing the ULC.

Suggested Citation

  • Mª Ángeles Caraballo & Francisco Gómez García & Eva Buitrago Esquinas, 2012. "Unit Labour Costs And Prices: A Sectorial Causality Analysis For The Spanish Regions," EcoMod2012 4145, EcoMod.
  • Handle: RePEc:ekd:002672:4145
    as

    Download full text from publisher

    File URL: http://ecomod.net/system/files/
    Download Restriction: no

    More about this item

    Keywords

    Spain; Miscellaneous; Labor market issues;

    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:ekd:002672:4145. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Theresa Leary). General contact details of provider: http://edirc.repec.org/data/ecomoea.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.