Wage Flexibility and Economic Performance PDF Download

Author: Ms.Magda E. Kandil
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451855906
Category : Business & Economics
Languages : en
Pages : 31

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Book Description
This paper provides new empirical evidence on the degree of nominal wage flexibility in a sample of nineteen industrial countries. Across countries, aggregate uncertainty increases the degree of wage flexibility in the face of various shocks. Wage flexibility stabilizes fluctuations in real output and guarantees workers a higher real standard of living in response to aggregate demand shocks. Wage flexibility in response to energy price shocks guarantees workers higher real wages without exacerbating price inflation or output contraction. Nominal wage inflation decreases in response to productivity shocks, reinforcing output expansion.

Author: Magda Kandil
Publisher: International Monetary Fund
ISBN:
Category : Business cycles
Languages : en
Pages : 38

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Author: Magda Kandil
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
By considering the theoretical connection between labour and product markets, the paper evaluates the economic relationship of these markets within the contractual wage rigidity New Keynesian explanation of business cycles. The empirical analysis focuses on the short-run cyclical behaviour of real output, prices and wages for 19 industrial countries. Time-series and cross-sectional regressions are estimated. Cross-sectional cyclical correlations in the labour and goods markets are also evaluated across countries. Consistent with the theoretical predictions, aggregate uncertainty is an important factor in increasing the flexibility of the nominal wage in response to aggregate demand shocks. Wage flexibility accelerates price inflation and moderates the response of real output growth to aggregate demand shocks. Wage flexibility does not appear to be an important factor in differentiating the real and inflationary effects of energy price shocks across countries. Finally, aggregate uncertainty increases the responsiveness of output and price to productivity shocks.

Author: Engelbert Stockhammer
Publisher: Springer
ISBN: 1137357932
Category : Business & Economics
Languages : en
Pages : 329

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Book Description
This volume seeks to go beyond the microeconomic view of wages as a cost having negative consequences on a given firm, to consider the positive macroeconomic dynamics associated with wages as a major component of aggregate demand.

Author: Kazutoshi Koshiro
Publisher:
ISBN:
Category :
Languages : en
Pages : 36

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Author: R. D. Gupta
Publisher: Delhi : Vikas Publications
ISBN:
Category : Full employment policies
Languages : en
Pages : 120

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Book Description
Economic theory monograph on promotion of employment through wages flexibility, with particular reference to India - concludes that a flexible monetary policy is more effective than a flexible wage policy.

Author: Mr.Si Guo
Publisher: International Monetary Fund
ISBN: 1475570392
Category : Business & Economics
Languages : en
Pages : 19

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Book Description
The paper assesses the price and wage flexibility in Hong Kong SAR. At the aggregate level, it compares Hong Kong SAR with the United States, the United Kingdom and Singapore by examining the three commonly used macroeconomic relationships among inflation, unemployment, wage growth, and output fluctuations. At the industry level, the paper compares the distributions of labor earnings and price growth in Hong Kong SAR and the United States. It further estimates a model of wage formation under downward nominal wage rigidity to compare the extent of wage rigidity in Hong Kong SAR and the United States. Overall, the comparisons show that broadly speaking, price and wage adjustments are more flexible in Hong Kong SAR than other economies.

Author: Jonathan Michie
Publisher: OUP Oxford
ISBN: 9780198290933
Category : Business & Economics
Languages : en
Pages : 284

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Book Description
From a post-war assumption that full employment could be maintained through demand management techniques, we now live in an entirely different world. The contributors to this volume consider whether full employment is possible or affordable.

Author: Alfonso Arpaia
Publisher:
ISBN:
Category : Labour market
Languages : en
Pages : 52

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Book Description
Recoge: 1. Introduction. - 2. Wage and unit labour cost developments. - 3. Phillips curve estimates. - 4. The cyclical responsiveness of relative compettitive positions in the euro area. - 5. Concluding remarks.

Author: Kazuyoshi Kōshiro
Publisher: Wayne State University Press
ISBN: 9780814320792
Category : Business & Economics
Languages : en
Pages : 180

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Book Description
Since the oil crisis of the 1970s, increased labor market flexibility seems to have become an indispensable ingredient of economic success. This book examines the critical issues that affect labor market flexibility and job security in the main industrialized economies of the United States, Japan, West Germany, the United Kingdom, and Europe, in an attempt to more fully understand the complex forces at work within such labor markets. Employment Security and Labor Market Flexibility originated from The International Symposium on Labor Market Flexibility in Yokohama, Japan, in 1986, in which scholars in economics, industrial relations, and labor law scholars scrutinized the similarities and differences of the labor markets in these countries. They focused on three main topics: wage flexibility in response to changing economic conditions, the legal and institutional framework for employment security, and international comparison of employment adjustment. Comparison of wage flexibility as well as numerical and functional flexibility among these countries were examined by both qualitative and quantitative analyses. The labor market cannot be treated in the same way as other markets because it deals directly with human beings who are less likely to obey the immutable laws of the market mechanism. Nevertheless, Kazutoshi Koshiro asserts that it is still important to build a framework on which to understand and assess the role of labor flexibility in the competitive process, and it is with this framework in mind that these chapters have been assembled into one volume. Individual chapters compare the relative flexibility of compensation and employment over the business cycle in the United States with that of Japan; analyze the relative flexibility of Japanese wages; unravel some of the underlying forces that comprise the employment security situation in the United States; study the important relationship between economic conditions and the labor market and explain the difference between the employment protection legislation of the United States on the one hand, and Europe and Japan, on the other; and compare the nature of labor markets and employment adjustment techniques of the United States, Europe, and Japan.