Fixed Wage Contracts and Monetary Non-Neutrality

Maria Björklund (), Mikael Carlsson and Oskar Skans
Additional contact information
Maria Björklund: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

No 2016:10, Working Paper Series from Uppsala University, Department of Economics

Abstract: We study the importance of wage rigidities for the monetary policy transmission mechanism. Using uniquely rich micro data on Swedish wage negotiations, we isolate periods when the labor market is covered by fixed wage contracts. Importantly, negotiations are coordinated in time but their seasonal patterns are far from deterministic. Using a VAR model, we document that monetary policy shocks have a substantially larger impact on production during fixed wage episodes as compared to the average response. The results are not driven by the periodic structure, nor the seasonality, of the renegotiation episodes.

Keywords: Monetary Policy; Wages; Nominal rigidities; Micro-data (search for similar items in EconPapers)
JEL-codes: E23 E24 E58 J41 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2016-08-17
References: Add references at CitEc
Citations:

Downloads: (external link)
http://uu.diva-portal.org/smash/get/diva2:953766/FULLTEXT01.pdf (application/pdf)

Related works:
Journal Article: Fixed-Wage Contracts and Monetary Non-neutrality (2019)
Working Paper: Fixed Wage Contracts and Monetary Non-Neutrality (2019)
Working Paper: Fixed wage contracts and monetary non-neutrality (2016)
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:hhs:uunewp:2016_010

Access Statistics for this paper

More papers in Working Paper Series from Uppsala University, Department of Economics Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Ulrika Öjdeby ().