Fixed Exchange-Rate Policy and Real Wage Growth: Quasi-Experimental Evidence
Corrado Andini ()
No 8701, IZA Discussion Papers from Institute for the Study of Labor (IZA)
Using Difference-in-Differences estimation and data from the European Community Household Panel, this paper suggests that the fixed exchange-rate policy adopted by Italy in the 1997-2000 period has reduced the real hourly wage growth of Italian full-time workers with permanent contracts, on average, by 3%. Yet, the cost of the policy has been ultimately paid by the private sector where real wage growth has decreased by 5.4%.
Keywords: difference-in-differences; productivity; wages (search for similar items in EconPapers)
JEL-codes: J31 C23 (search for similar items in EconPapers)
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