Nominal and Real Wage Flexibility in EMU

Moving closer? Comparing regional adjustments to shocks in EMU and the United States

“…As discussed by Obstfeld and Peri (1998) previous research documents this finding adding that, in general, relative regional prices tend to fluctuate less than international prices ( Vaubel, 1976 , Vaubel, 1978 , Eichengreen, 1991 , De Grauwe and Vanhaverbeke, 1993 ). In addition, the relative insufficient degree of prices and wages flexibility in Europe is suggested by recent studies, such as Arpaia and Pichelmann, 2007 , Heinz and Rusinova, 2011 . Arpaia and Pichelmann (2007) suggest that long-lasting cross-country differences in labor cost and wage dynamics in the euro area reflect weak wage flexibility, rather than a mechanism of adjustment between countries.…”

“…In addition, the relative insufficient degree of prices and wages flexibility in Europe is suggested by recent studies, such as Arpaia and Pichelmann, 2007 , Heinz and Rusinova, 2011 . Arpaia and Pichelmann (2007) suggest that long-lasting cross-country differences in labor cost and wage dynamics in the euro area reflect weak wage flexibility, rather than a mechanism of adjustment between countries. Heinz and Rusinova (2011) find that the degree of real wage flexibility tends to be larger in the central and eastern European countries than in the euro area—probably due to the more limited role played by trade unions and collective bargaining coverage in the EU peripheral economies.…”

Розвиток Інфраструктури Як Структурна Реформа В Україні: Інвестиційні Аспекти, Міжнародний Досвід Та Аудит

“…This led to further research in the area of wage rigidities. Arpaia and Pichelmann (2007) and Babetskii (2007) provide evidence for significant wage rigidities across euro area countries. The impact of institutional rigidities is analysed by Bassanini and Duval (2006), who show that high and long-lasting unemployment benefits, high marginal tax wedges and stringent product market regulation increase structural unemployment and decrease employment.…”

Instituciones y determinación de los salarios en la zona del euro. Evaluación con técnicas de cointegración de panel

“…El desempleo tiene una relación negativa con el salario real a largo plazo. Resulta interesante que la elasticidad estimada a largo plazo del salario real respecto del desempleo se acerque a la estimada por Arpaia y Pichelmann (2007). Por último, el coeficiente de reer es positivo y significativo: un aumento en el tipo de cambio efectivo real genera un aumento de los salarios reales.…”