EconPapers    
Economics at your fingertips  
 

Wage Setting and Labour Market Adjustment in Europe, Japan and the USA

George Alogoskoufis () and Alan Manning ()

No 232, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In this paper we present an investigation of unemployment persistence in Japan, the United States and fourteen European economies. We concentrate on the sources of slow adjustment in the labour market, such as sluggishness in labour demand and persistence in the employment and wage targets of wage-setters. Two structural characteristics seem to account for most of the recent differential unemployment persistence in our sample of countries: first, sluggishness in labour demand, and second, the relative weighting in the preferences of wage-setters of real wage deviations from target as against employment deviations from target. We also examine the short-run and medium-run effects on unemployment of shocks and policies that shift the labour demand and wage-setting curves respectively. Finally, we examine the implications of our findings for current policy debates.

Keywords: Adjustment; Labour Market Flexibility; Unemployment; Wage-Setting Process (search for similar items in EconPapers)
Date: 1988-03
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=232 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:232

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=232

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2020-07-06
Handle: RePEc:cpr:ceprdp:232