The role of wage bargaining institutions in the Phillips curve Flattening

Detalhes bibliográficos
Autor(a) principal: De Palma, Francesco
Data de Publicação: 2022
Outros Autores: Ligonnière, Samuel, Saadaoui, Jamel, Thommen, Yann
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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spelling 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
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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