{
  "title": "Wage-Price Setting in New EU Member States",
  "publication": "IMF Working Papers, October 1, 2008",
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  "summary": "This paper analyzes wage- and price-setting relations in new EU member countries. Panel estimates indicate a strong and significant relationship between real wages and labor productivity, as well as evidence of wage pass-through to inflation. Terms of trade shocks do not feed through to real wages.",
  "sections": [
    {
      "heading": "Major findings",
      "content": "- Panel estimates indicate a strong and significant relationship between real wages and labor productivity.\n- Evidence of wage pass-through to inflation is found.\n- Terms of trade shocks do not feed through to real wages.\n- Country-specific wage developments, beyond differences in labor productivity growth, are mostly explained by real wage catch-up from different initial levels and different labor market conditions.\n- Qualitative evidence suggests that public sector wage demonstration effects and institutional factors may play a role in wage determination."
    },
    {
      "heading": "Econometric and empirical evidence",
      "content": "- Panel estimation results: strong and significant relationship between real wages and labor productivity.\n- Wage pass-through: measurable effect from wages to inflation identified.\n- Terms-of-trade channel: no feed-through from terms of trade shocks to real wages detected."
    },
    {
      "heading": "Country-specific drivers",
      "content": "- Real wage catch-up from different initial levels is a primary source of cross-country wage divergence.\n- Different labor market conditions account for much of country-specific wage developments beyond productivity differences.\n- Institutional factors and public sector wage demonstration effects appear influential based on qualitative evidence."
    },
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      "heading": "Research scope and metadata highlights",
      "content": "- Working Paper No. 2008/243\n- Pages: 24\n- DOI: https://doi.org/10.5089/9781451871012.001\n\nSource: IMF Working Paper No. 2008/243.\n\n---\n\n Content in this bundle\n\n- wp08243\n  - wp08243 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp08243 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/wage-price-setting-in-new-eu-member-states-22389"
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    "Authors: Manuela Goretti",
    "Published: October 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451871012.001",
    "Panel estimates indicate a strong and significant relationship between real wages and labor productivity.",
    "Evidence of wage pass-through to inflation is found.",
    "Terms of trade shocks do not feed through to real wages.",
    "Country-specific wage developments, beyond differences in labor productivity growth, are mostly explained by real wage catch-up from different initial levels and different labor market conditions.",
    "Qualitative evidence suggests that public sector wage demonstration effects and institutional factors may play a role in wage determination.",
    "Panel estimation results: strong and significant relationship between real wages and labor productivity.",
    "Wage pass-through: measurable effect from wages to inflation identified.",
    "Terms-of-trade channel: no feed-through from terms of trade shocks to real wages detected.",
    "Real wage catch-up from different initial levels is a primary source of cross-country wage divergence.",
    "Different labor market conditions account for much of country-specific wage developments beyond productivity differences.",
    "Institutional factors and public sector wage demonstration effects appear influential based on qualitative evidence.",
    "Working Paper No. 2008/243",
    "Pages: 24",
    "DOI: https://doi.org/10.5089/9781451871012.001",
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