Real wages over the business cycle: OECD evidence from the time and frequency domains

Julian Messina, Jarkko Turunen and Chiara Strozzi ()

No 1003, Working Paper Series from European Central Bank

Abstract: We study differences in the adjustment of aggregate real wages in the manufacturing sector over the business cycle across OECD countries, combining results from different data and dynamic methods. Summary measures of cyclicality show genuine cross-country heterogeneity even after controlling for the impact of data and methods. We find that more open economies and countries with stronger unions tend to have less pro-cyclical (or more counter-cyclical) wages. We also find a positive correlation between the cyclicality of real wages and employment, suggesting that policy complementarities may influence the adjustment of both quantities and prices in the labour market. JEL Classification: E32, J30, C10

Keywords: business cycle; dynamic correlation; Labour Market Institutions; real wages (search for similar items in EconPapers)
Date: 2009-02
New Economics Papers: this item is included in nep-bec, nep-lab, nep-mac and nep-opm
Note: 1267758
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (43)

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Related works:
Journal Article: Real wages over the business cycle: OECD evidence from the time and frequency domains (2009)
Working Paper: Real Wages over the Business Cycle: OECD Evidence from the Time and Frequency Domains (2009)
Working Paper: Real Wages over the Business Cycle: OECD Evidence from the Time and Frequency Domains (2008)
Working Paper: Real Wages over the Business Cycle: OECD Evidence from the Time and Frequency Domains (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20091003

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