Author: Jonathan Michie
Publisher: Bloomsbury Publishing
ISBN: 147250819X
Category : Business & Economics
Languages : en
Pages : 209
Book Description
During prolonged economic recessions when the normal cyclical expansion of output fails to materialize, the topic of the 'cyclical behaviour of wages' has emerged as an area of debate. In 1985, the British Treasury claimed that academic studies into the cyclical behaviour of wages demonstrated that a cut in wages would increase employment. Wages in the Business Cycle contests this argument by presenting the results of original, empirical work which illustrates the absence of any systematic empirical regularity to wage movements over the business cycle. Jonathan Michie argues that the re-emergence of this debate must be seen within the context of the theory of the 'labour demand function', representing an attempt to challenge the Keynesian theoretical assumptions implicit in the bulk of applied macro economic work up to the late 1970s.
Wages in the Business Cycle
Author: Jonathan Michie
Publisher: Bloomsbury Publishing
ISBN: 147250819X
Category : Business & Economics
Languages : en
Pages : 209
Book Description
During prolonged economic recessions when the normal cyclical expansion of output fails to materialize, the topic of the 'cyclical behaviour of wages' has emerged as an area of debate. In 1985, the British Treasury claimed that academic studies into the cyclical behaviour of wages demonstrated that a cut in wages would increase employment. Wages in the Business Cycle contests this argument by presenting the results of original, empirical work which illustrates the absence of any systematic empirical regularity to wage movements over the business cycle. Jonathan Michie argues that the re-emergence of this debate must be seen within the context of the theory of the 'labour demand function', representing an attempt to challenge the Keynesian theoretical assumptions implicit in the bulk of applied macro economic work up to the late 1970s.
Publisher: Bloomsbury Publishing
ISBN: 147250819X
Category : Business & Economics
Languages : en
Pages : 209
Book Description
During prolonged economic recessions when the normal cyclical expansion of output fails to materialize, the topic of the 'cyclical behaviour of wages' has emerged as an area of debate. In 1985, the British Treasury claimed that academic studies into the cyclical behaviour of wages demonstrated that a cut in wages would increase employment. Wages in the Business Cycle contests this argument by presenting the results of original, empirical work which illustrates the absence of any systematic empirical regularity to wage movements over the business cycle. Jonathan Michie argues that the re-emergence of this debate must be seen within the context of the theory of the 'labour demand function', representing an attempt to challenge the Keynesian theoretical assumptions implicit in the bulk of applied macro economic work up to the late 1970s.
Real wages over the business cycle
Employment and the Great Recession
Author: Mr.Bas B. Bakker
Publisher: International Monetary Fund
ISBN: 1513599380
Category : Business & Economics
Languages : en
Pages : 60
Book Description
This paper argues that the sharp increase in unemployment in a number of advanced countries during the Great Recession was not just cyclical (the result of a lack of aggregate demand); the degree of adjustment of real wages and the impact this had on labor productivity also played a role. In many countries, post-2007 employment losses were modest, as real wages adjusted when the economy slowed down. But in some countries real wage growth stayed too high for too long. The result was large-scale labor shedding, which boosted labor productivity but also contributed to a sharp rise in unemployment. In this context, the paper discusses the different experiences of the UK (where employment increased) and Spain (where it fell sharply), and finds that almost two thirds of the employment losses in Spain resulted from the failure of real wages to adjust adequately.
Publisher: International Monetary Fund
ISBN: 1513599380
Category : Business & Economics
Languages : en
Pages : 60
Book Description
This paper argues that the sharp increase in unemployment in a number of advanced countries during the Great Recession was not just cyclical (the result of a lack of aggregate demand); the degree of adjustment of real wages and the impact this had on labor productivity also played a role. In many countries, post-2007 employment losses were modest, as real wages adjusted when the economy slowed down. But in some countries real wage growth stayed too high for too long. The result was large-scale labor shedding, which boosted labor productivity but also contributed to a sharp rise in unemployment. In this context, the paper discusses the different experiences of the UK (where employment increased) and Spain (where it fell sharply), and finds that almost two thirds of the employment losses in Spain resulted from the failure of real wages to adjust adequately.
Labor Quality and the Cyclicality of Real Wages
Author: Haoming Liu
Publisher: London : Department of Economics, University of Western Ontario
ISBN:
Category : Business & Economics
Languages : en
Pages : 52
Book Description
Publisher: London : Department of Economics, University of Western Ontario
ISBN:
Category : Business & Economics
Languages : en
Pages : 52
Book Description
Real Wages Over the Business Cycle
Author: Michael P. Keane
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 50
Book Description
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 50
Book Description
Real Wages & Business Cycle Asymmetries
The Recent Trend of Real Wages ...
Real Wages Over the Business Cycle
Real wages over the business cycle
Real Wages and Business Cycle Asymmetries
Author: Ulrich Woitek
Publisher:
ISBN:
Category : Reallohn / Konjunktur / VAR-Modell / Schätzung / Vergleich / USA / Deutschland
Languages : en
Pages : 23
Book Description
The cyclicality of real wages has important implications for the validity of competing business cycle theories. However, the empirical evidence on the aggregate level is inconclusive. Using a threshold vector autoregressive model for the US and Germany to condition the relationship between real wages and business fluctuations on the phase of the cycle, it is demonstrated that the inconclusive evidence is not only caused by measurement problems, estimation method and composition bias as discussed in the literature. In addition, one should also consider whether the economy is in an upswing or a downswing. In general, the evidence for countercyclical wages is stronger in Germany than for the US, but taken together there is no clear systematic pattern.
Publisher:
ISBN:
Category : Reallohn / Konjunktur / VAR-Modell / Schätzung / Vergleich / USA / Deutschland
Languages : en
Pages : 23
Book Description
The cyclicality of real wages has important implications for the validity of competing business cycle theories. However, the empirical evidence on the aggregate level is inconclusive. Using a threshold vector autoregressive model for the US and Germany to condition the relationship between real wages and business fluctuations on the phase of the cycle, it is demonstrated that the inconclusive evidence is not only caused by measurement problems, estimation method and composition bias as discussed in the literature. In addition, one should also consider whether the economy is in an upswing or a downswing. In general, the evidence for countercyclical wages is stronger in Germany than for the US, but taken together there is no clear systematic pattern.