Public wage and pension indexation in the euro area: an overview

Cristina Checherita-Westphal, João Domingues Semeano, Elena Ahonen, Pierrick Stinglhamber, Stefan Van Parys, Johannes Clemens, Katri Urke, Orsolya Soosaar, Maria Vergou, Maria Flevotomou, David Staunton, Jorge Martínez-Pagés, Aristoklis Avgousti, Gintare Zelionkaite, Olivier Delobbe, Florian Henne, Baiba Brusbārde, John Farrugia, Juergen Attard, Fabrizio Renzi, Marco Savegnago, Doris Prammer, Lukas Reiss, Gerard Eijsink, Jip Italianer, Maria Campos, Andreja Strojan Kastelec, Barbora Palášthyová, Vratislav Pisca and Jarkko Kivistö
Authors registered in the RePEc Author Service: Cristina Checherita Westphal

No 299, Occasional Paper Series from European Central Bank

Abstract: If the responses of wages – both private and public – and of pensions to an increase in inflation lead to second-round effects, this can make an inflationary shock more persistent, especially in the presence of automatic wage and pension indexation. This occasional paper presents an overview of the indexation schemes and other mechanisms for setting public wages and pensions across the euro area countries. It concludes that price indexation of public wages is relatively limited in the euro area, while public pensions are overwhelmingly automatically indexed, either fully or partially, to prices and wages. JEL Classification: E62, J3, H55, E31

Keywords: and Labor Costs; Compensation; Fiscal policy; Inflation; Social Security and Public Pensions; Wages (search for similar items in EconPapers)
Date: 2022-08
New Economics Papers: this item is included in nep-age and nep-lma
Note: 1790315
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpops/ecb.op299~61d0565cfb.en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbops:2022299

Access Statistics for this paper

More papers in Occasional Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().