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Inflation and Wage Indexation in the Postwar U.S

Steven Holland
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Steven Holland: University of Kentucky

Macroeconomics from University Library of Munich, Germany

Abstract: This paper examines the relationship between inflation and wage indexation in the postwar U.S. using data on the prevalence of cost-of- living adjustments in major collective bargaining agreements. I find 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.

JEL-codes: E (search for similar items in EconPapers)
Date: 1994-02-07
Note: 17 pages including one table and one figure.
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Handle: RePEc:wpa:wuwpma:9402001