Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Co-movements between public and private wages in the EU: what factors and with what policy implications?

Co-movements between public and private wages in the EU: what factors and with what policy... This paper assesses the relationship between public and private wages in the EU, as measured by general government and manufacturing compensations, respectively. We find that the long-run relation between the two is stronger when the government is a large employer. Manufacturing compensations are better aligned with productivity and unemployment when general government compensations, to which they generally respond, are set through bargaining. Finally, manufacturing compensations react in the same way whether those in the general government sector are increased or cut, a relation that seems to hold also under fiscal consolidation provided the government is a large employer. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png IZA Journal of European Labor Studies Springer Journals

Co-movements between public and private wages in the EU: what factors and with what policy implications?

Download PDF
16 pages

Loading next page...
 
/lp/springer-journals/co-movements-between-public-and-private-wages-in-the-eu-what-factors-eqnre0nrfn
Publisher
Springer Journals
Copyright
Copyright © 2017 by The Author(s).
Subject
Economics; Labor Economics; Population Economics; European Integration
eISSN
2193-9012
DOI
10.1186/s40174-016-0074-1
Publisher site
See Article on Publisher Site

Abstract

This paper assesses the relationship between public and private wages in the EU, as measured by general government and manufacturing compensations, respectively. We find that the long-run relation between the two is stronger when the government is a large employer. Manufacturing compensations are better aligned with productivity and unemployment when general government compensations, to which they generally respond, are set through bargaining. Finally, manufacturing compensations react in the same way whether those in the general government sector are increased or cut, a relation that seems to hold also under fiscal consolidation provided the government is a large employer.

Journal

IZA Journal of European Labor Studies – Springer Journals

Published: Jan 30, 2017

References

  • Interactions between private and public sector wages
    Afonso, A; Gomes, P
  • Fiscal policy, profits, and investment
    Alesina, A; Ardagna, S; Perotti, R; Schiantarelli, F
  • The welfare state and competitiveness
    Alesina, A; Perotti, R
  • Public employment and labour market performance
    Algan, Y; Cahuc, P; Zylberberg, A
  • Fiscal stabilizations: when do they work and why
    Ardagna, S
  • Fiscal policy in unionised labour markets
    Ardagna, S
  • External Imbalanced and Public Finances in the EU
    Barrios, S; Langedijk, S
  • Adjustment within the euro. The difficult case of Portugal
    Blanchard, O
  • Government wages and labour market outcomes
  • Employment in the public sector
    Forni, L; Giordano, R
  • The public sector pay gap in a selection of Euro area countries
    Giordano, R
  • Investigation of production, sales and inventory relationships using multicointegration and non-symmetric error correction models
    Granger, CWJ; Lee, TH
  • Public and private sector wages in the Netherlands
    Hartog, J; Oosterbeek, H
  • Wage setting in private and public sectors in a model with endogenous government behavior
    Holmlund, B
  • Public wages in the euro area: towards securing stability and competitiveness
    Holm-Hadulla, F
  • Are government wages interlinked with private sector wages
    Lamo, A; Perez, JJ; Schuknecht, L
  • Public or private sector wage leadership? An international perspective?
    Lamo, A; Perez, JJ; Schuknecht, L
  • The cyclicality of consumption, wages and employment of the public sector in the euro area
    Lamo, A; Perez, JJ; Schuknecht, L
  • The importance of composition of fiscal policy: evidence from different exchange rate regimes
    Lane, P; Perotti, R
  • The trade balance and fiscal policy in the OECD
    Lane, P; Perotti, R
  • Non-Walrasian Labor Markets and Real Business Cycles
    Maffezzoli, M
  • Is there a signaling role for public wages? Evidence for the euro area based on macro data
    Perez, JJ; Sanchez-Fuentes, AJ