Exchange-rate policy, institutions and wages: A macroeconomic quasi-experiment from Italy, 1997–2000

Corrado Andini

International Economics, 2023, vol. 175, issue C, 158-170

Abstract: This paper performs a macroeconomic quasi-experiment with individual data to study how the fixed exchange-rate policy implemented in Italy between 1997 and 2000, by itself or in combination with the institutional setting, affected the growth rate of real wages among resident workers. Accounting for both observed and unobserved individual characteristics through the Difference-in-Differences estimator, we find that the fixed exchange-rate policy reduced the growth rate of real wages in the private sector, relative to the counterfactual of a flexible exchange-rate policy, which is simulated through comparable micro data from the United Kingdom. Evidence of heterogeneous treatment effects across sectors and industries is also presented.

Keywords: Exchange rates; Wages; Difference-in-Differences; Unions (search for similar items in EconPapers)
JEL-codes: C23 F41 J31 J50 O43 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2110701723000501
Full text for ScienceDirect subscribers only

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:eee:inteco:v:175:y:2023:i:c:p:158-170

DOI: 10.1016/j.inteco.2023.07.001

Access Statistics for this article

International Economics is currently edited by Valerie Mignon and Marcelo Olarreaga

More articles in International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().