Inflation and Wage Indexation in the Postwar United States

A Steven Holland

The Review of Economics and Statistics, 1995, vol. 77, issue 1, 172-76

Abstract: This paper examines the relationship between inflation and wage indexation in the postwar United States using data on the prevalence of cost-of-living adjustments in major collective bargaining agreements. The author finds that increases in inflation precede increases in wage indexation but reductions in inflation do not precede reductions in wage indexation. There is virtually no evidence that wage indexation affects inflation. Copyright 1995 by MIT Press.

Date: 1995
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