Is there a signalling role for public wages? Evidence for the euro area based on macro data
Javier Pérez () and
Antonio Jesus Sanchez Fuentes ()
No 934, Working Papers from Banco de España, Working Papers Homepage
Do public sector wages exert presures on private sector wages, or has private sector a leadership role in wage setting?. This paper tries to isolate the pure signalling effect that one sector might exert on the other by controlling for other determinants of wages (prices, productivity, institutions) for the main euro area economies (Germany, France, Italy and Spain) and the periods 1980-2007 and 1991-2007. It exploits avilable quarterly information not yet used in the literature, and combine different data sources in the framework of mixed frequencies time series models. The quarterly frequency of our data allows us to check the existence of strong evidence of public wages’ leadership, either in conjunction with bidirectional links from the private sector (Germany and Spain) or pure public wage leadership (France in the sample 1991-2007, Italy for within-the-year linkages).
Keywords: government wages; private sector wages; signalling; causality; mixed frequency data; casual graph (search for similar items in EconPapers)
JEL-codes: C32 C53 J30 J51 E62 E63 H50 H6 (search for similar items in EconPapers)
Pages: 33 pages
New Economics Papers: this item is included in nep-eec and nep-lab
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Journal Article: Is there a signalling role for public wages? Evidence for the euro area based on macro data (2011)
Working Paper: Is there a signalling role for public wages? Evidence for the euro area based on macro data (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:0934
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