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Inflation and Wage Indexation in the Postwar U.S

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  • Steven Holland

    (University of Kentucky)

Abstract

This paper examines the relationship between inflation and wage indexation in the postwar U.S. using data on the prevalence of cost-of- living adjustments in major collective bargaining agreements. I find that increases in inflation precede increases in wage indexation but reductions in inflation do not precede reductions in wage indexation. There is virtually no evidence that wage indexation affects inflation.

Suggested Citation

  • Steven Holland, 1994. "Inflation and Wage Indexation in the Postwar U.S," Macroeconomics 9402001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:9402001
    Note: 17 pages including one table and one figure.
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    References listed on IDEAS

    as
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    6. Alogoskoufis, George S & Smith, Ron, 1991. "The Phillips Curve, the Persistence of Inflation, and the Lucas Critique: Evidence from Exchange-Rate Regimes," American Economic Review, American Economic Association, vol. 81(5), pages 1254-1275, December.
    7. Fischer, Stanley & Summers, Lawrence H, 1989. "Should Governments Learn to Live with Inflation?," American Economic Review, American Economic Association, vol. 79(2), pages 382-387, May.
    8. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
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    Full references (including those not matched with items on IDEAS)

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