Co-movements between public and private wages in the EU: what factors and with what policy implications?
Benedicta Marzinotto and
Alessandro Turrini ()
IZA Journal of European Labor Studies, 2017, vol. 6, issue 1, 1-16
Abstract This paper assesses the relationship between public and private wages in the EU, as measured by general government and manufacturing compensations, respectively. We find that the long-run relation between the two is stronger when the government is a large employer. Manufacturing compensations are better aligned with productivity and unemployment when general government compensations, to which they generally respond, are set through bargaining. Finally, manufacturing compensations react in the same way whether those in the general government sector are increased or cut, a relation that seems to hold also under fiscal consolidation provided the government is a large employer. JEL Classification: C32, E24, E62, H59
Keywords: General government compensations; Wage setting; Cost competitiveness; Fiscal consolidation; Co-integration (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1186/s40174-016-0074-1 Abstract (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:izaels:v:6:y:2017:i:1:d:10.1186_s40174-016-0074-1
Ordering information: This journal article can be ordered from
Access Statistics for this article
IZA Journal of European Labor Studies is currently edited by Sara de la Rica, Alan Barrett and Martin Kahanec
More articles in IZA Journal of European Labor Studies from Springer, Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Bibliographic data for series maintained by Sonal Shukla ().