Wage Flexibility and Economic Performance: Evidence Across Industrial Countries
IMF Working Papers, August 1, 2000
Source details
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- Wage Flexibility and Economic Performance: Evidence Across Industrial Countries
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Bibliographic details
- Authors: Magda E. Kandil
- Published: August 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451855906.001
Summary of findings
- The 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.
Scope and themes analyzed
- Sample: nineteen industrial countries.
- Major shock types examined:
- aggregate demand shocks
- energy price shocks
- productivity shocks
- Core outcomes evaluated:
- degree of nominal wage flexibility
- real output fluctuations
- workers' real standard of living / real wages
- price inflation and output contraction
Publication and metadata
- Author: Magda E. Kandil
- Date: August 1, 2000
- Series: Working Paper No. 2000/137
- Issue: 137
- Volume: 2000
- Pages: 31
- DOI: https://doi.org/10.5089/9781451855906.001
- ISBN: 9781451855906
- ISSN: 1018-5941
Subjects and keywords
- Subject: Energy pricing, Expenditure, Inflation, Labor, Prices, Productivity, Real wages, Wage flexibility, Wages
- Keywords: aggregate demand demand shock, demand shocks, energy price shock, energy price shocks, Energy pricing, Inflation, price deflation, price inflation, productivity shock, productivity shocks, Real wages, standard deviation, Wage Flexibility, Wages, WP
Summary derived from the IMF Working Paper landing page for "Wage Flexibility and Economic Performance: Evidence Across Industrial Countries" by Magda E. Kandil (August 1, 2000).
Content in this bundle
- Wage Flexibility and Economic Performance: Evidence Across Industrial Countries - WP/00/137