Have greed and rapidly rising wages triggered a profit-wage-price spiral? Firm-level evidence for Belgium

Gert Bijnens, Cédric Duprez and Jana Jonckheere

Economics Letters, 2023, vol. 232, issue C

Abstract: Our study of Belgian firms found that 2022 price increases were largely attributable to rising intermediate input costs. Wage increases also contributed to prices hikes. Interestingly, markups appeared to play no role in driving up prices and in fact decreased or even offset the contribution of wages. In a country with automatic wage indexation, this is an important point for discussion in the debate on the profit-price or wage-price spiral.

Keywords: Markups; Greedflation; Wages; Profits; Wage-price spiral; Profit-wage-price spiral (search for similar items in EconPapers)
JEL-codes: D22 D4 E3 J3 L11 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:232:y:2023:i:c:s0165176523003671

DOI: 10.1016/j.econlet.2023.111342

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