Wage-setting patterns and monetary policy: International evidence

Giovanni Olivei and Silvana Tenreyro

Journal of Monetary Economics, 2010, vol. 57, issue 7, 785-802

Abstract: Systematic differences in the timing of wage-setting decisions among industrialized countries provide an ideal framework to study the importance of wage rigidity for the transmission of monetary policy. Synchronization in wage-setting decisions is prevalent in Japan and the United States, yielding varying degrees of wage rigidity within the year; instead, in France, Germany, and the United Kingdom decisions are more uniformly spread over time. Exploiting within-year variation in the timing of wage-setting decisions in these economies, we find support for the long-held but scarcely tested view that wage rigidity plays a critical role in the transmission of monetary policy.

Date: 2010
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Related works:
Working Paper: Wage setting patterns and monetary policy: international evidence (2010)
Working Paper: Wage Setting Patterns and Monetary Policy: International Evidence (2008)
Working Paper: Wage setting patterns and monetary policy: international evidence (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:57:y:2010:i:7:p:785-802

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