The development of the wage share in the euro area since the start of the pandemic

Katalin Bodnár and Matthias Mohr

Economic Bulletin Boxes, 2023, vol. 4

Abstract: This box examines the wage share in the euro area, which has edged down since the start of the pandemic, as workers have so far not been able to recover real wage losses amidst high inflation and robust profit margins. The decline is in most sectors, except for less contact-intensive private services and public services. The reduced wage share suggests that part of the recent terms-of-trade shock and its impact on consumer price inflation has been absorbed by workers and that second-round effects from wages on inflation have so far been relatively moderate. JEL Classification: E24, E25, E31, E37

Keywords: inflation; labour market; second-round effects; Wage share (search for similar items in EconPapers)
Date: 2023-06
Note: 2881411
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbbox:2023:0004:4

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