The role of wage bargaining institutions in the Phillips curve Flattening
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/25064 |
Resumo: | We investigate the role of collective wage bargaining institutions on the relationship between wage growth and unemployment, that is, the wage Phillips curve. Based on a labour market model with frictions and collective bargaining, we hypothesize that when the economy deteriorates, wages fall less in parts of the economy covered by collective wage agreements negotiated by trade unions at a centralized level than in economies with bargaining fully decentralized within companies. We move from theory to empirical analysis using regional NUTS-2 data from European countries, which show evidence that the wage Phillips curve flattens when unemployment is high — and gets steeper when the labor market is overheated —, in economies where the sectoral or cross-sectoral levels play a role in the collective wage bargaining. We also find that from a level of centralization intermediate between the company and the sector levels, the wage Phillips curve is twice as flat. |
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The role of wage bargaining institutions in the Phillips curve FlatteningPhillips curveUnemploymentInflationWagesCollective bargainingWe investigate the role of collective wage bargaining institutions on the relationship between wage growth and unemployment, that is, the wage Phillips curve. Based on a labour market model with frictions and collective bargaining, we hypothesize that when the economy deteriorates, wages fall less in parts of the economy covered by collective wage agreements negotiated by trade unions at a centralized level than in economies with bargaining fully decentralized within companies. We move from theory to empirical analysis using regional NUTS-2 data from European countries, which show evidence that the wage Phillips curve flattens when unemployment is high — and gets steeper when the labor market is overheated —, in economies where the sectoral or cross-sectoral levels play a role in the collective wage bargaining. We also find that from a level of centralization intermediate between the company and the sector levels, the wage Phillips curve is twice as flat.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaDe Palma, FrancescoLigonnière, SamuelSaadaoui, JamelThommen, Yann2022-08-01T12:33:02Z2022-062022-06-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/25064engDe Palma, Francesco ... [et al.] (2022). "The role of wage bargaining institutions in the Phillips curve Flattening". REM Working paper series, nº 0236/20222184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:54:41Zoai:www.repository.utl.pt:10400.5/25064Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:09:00.831655Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The role of wage bargaining institutions in the Phillips curve Flattening |
title |
The role of wage bargaining institutions in the Phillips curve Flattening |
spellingShingle |
The role of wage bargaining institutions in the Phillips curve Flattening De Palma, Francesco Phillips curve Unemployment Inflation Wages Collective bargaining |
title_short |
The role of wage bargaining institutions in the Phillips curve Flattening |
title_full |
The role of wage bargaining institutions in the Phillips curve Flattening |
title_fullStr |
The role of wage bargaining institutions in the Phillips curve Flattening |
title_full_unstemmed |
The role of wage bargaining institutions in the Phillips curve Flattening |
title_sort |
The role of wage bargaining institutions in the Phillips curve Flattening |
author |
De Palma, Francesco |
author_facet |
De Palma, Francesco Ligonnière, Samuel Saadaoui, Jamel Thommen, Yann |
author_role |
author |
author2 |
Ligonnière, Samuel Saadaoui, Jamel Thommen, Yann |
author2_role |
author author author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
De Palma, Francesco Ligonnière, Samuel Saadaoui, Jamel Thommen, Yann |
dc.subject.por.fl_str_mv |
Phillips curve Unemployment Inflation Wages Collective bargaining |
topic |
Phillips curve Unemployment Inflation Wages Collective bargaining |
description |
We investigate the role of collective wage bargaining institutions on the relationship between wage growth and unemployment, that is, the wage Phillips curve. Based on a labour market model with frictions and collective bargaining, we hypothesize that when the economy deteriorates, wages fall less in parts of the economy covered by collective wage agreements negotiated by trade unions at a centralized level than in economies with bargaining fully decentralized within companies. We move from theory to empirical analysis using regional NUTS-2 data from European countries, which show evidence that the wage Phillips curve flattens when unemployment is high — and gets steeper when the labor market is overheated —, in economies where the sectoral or cross-sectoral levels play a role in the collective wage bargaining. We also find that from a level of centralization intermediate between the company and the sector levels, the wage Phillips curve is twice as flat. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-08-01T12:33:02Z 2022-06 2022-06-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/25064 |
url |
http://hdl.handle.net/10400.5/25064 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
De Palma, Francesco ... [et al.] (2022). "The role of wage bargaining institutions in the Phillips curve Flattening". REM Working paper series, nº 0236/2022 2184-108X |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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