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Real Wage Resistance and Unemployment: Multivariate Analysis of Cointegrating Relations in 10 OECD Countries

Listed author(s):
  • Timo Tyrväinen
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    Over the past twenty years or so, unemployment has been increasing in most OECD economies. In the same period, there has been a considerable increase in the wedge between the real cost to the employer of hiring a worker and the net real wage received by the worker. The present study examines whether changes in the wedge (including various tax rates) may have generated long-lasting effects on real labour costs. Behaviour which generates this kind of outcome is called "real wage resistance". If there is real wage resistance, a rise in the wedge leads to higher unemployment. If this outcome persists in the long run, the primary problem related to the functioning of the wage setting mechanism is not necessarily the speed of adjustment but rather the equilibrium in which adjustment terminates. The countries examined are the United States, Japan, Germany, France, the United Kingdom, Italy, Canada, Australia, Sweden and Finland. The study covers the private business sector and the ... La résistance des salaires réels et le chômage analyse à plusieurs variables des relations de cointégration dans 10 économies de l'OCDE Depuis une vingtaine d'années, le chômage progresse dans la plupart des économies de l’OCDE. Durant la même période on a vu se creuser sensiblement l’écart entre le coût réel d’un travailleur pour l’employeur et le salaire net réel perçu par le travailleur. La présente étude examine si l’évolution de cet écart (notamment des divers taux d’imposition) a pu avoir des effets durables sur les coûts réels de main d'oeuvre. On appelle "résistance des salaires réels" le comportement qui aboutit à ce type de résultat. S'il y a résistance des salaires réels un accroissement de l’écart entraîne une montée du chômage. Si cet effet persiste longtemps, le problème essentiel pour le bon fonctionnement du mécanisme de détermination des salaires n’est pas nécessairement la rapidité d’ajustement, mais plutôt l’équilibre obtenu. Les pays étudiés sont les États-Unis, le Japon, l’Allemagne, la France, le Royaume-Uni, l’Italie, le Canada, l’Australie, la Suède et la Finlande. L’étude porte sur les ...

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    Paper provided by OECD Publishing in its series OECD Jobs Study Working Papers with number 10.

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    Date of creation: 01 Jan 1995
    Handle: RePEc:oec:elsaac:10-en
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