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Wage Flexibility and Labour Market Institutions: A Meta-Analysis

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  • Clar, Miquel

    (University of Barcelona)

  • Dreger, Christian

    (DIW Berlin)

  • Ramos, Raul

    (University of Barcelona)

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.

Suggested Citation

  • Clar, Miquel & Dreger, Christian & Ramos, Raul, 2007. "Wage Flexibility and Labour Market Institutions: A Meta-Analysis," IZA Discussion Papers 2581, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2581
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    References listed on IDEAS

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    More about this item

    Keywords

    meta analysis; wage flexibility; institutions;
    All these keywords.

    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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