Aggregate Wage Flexibility in New EU Member States
![[img]](http://dlib.lib.cas.cz/style/images/fileicons/application_pdf.png)  Preview |
| PDF Language: English 784Kb |
Title: | Aggregate Wage Flexibility in New EU Member States |
---|
Creators: | |
---|
Journal or Publication Title: | AUCO Czech Economic Review, 2, 2, pp. 123-146 |
---|
Uncontrolled Keywords: | ERM-II, euro adoption, labor market, wage flexibility |
---|
AbstractA fixed exchange rate regime eliminates one degree of freedom in absorbing macroeconomic shocks. Therefore, there is a call for higher labor market flexibility in countries which are members of the monetary union or those which intend to join the monetary union. Focusing on the cross-country analysis of labor markets in the enlarged European Union, this paper aims to assess empirically the role of aggregate wages as a correction mechanism for dealing with economic disturbances. We apply classical time series/panel, state-space and cointegration techniques to determine the extent to which aggregate wages can accommodate shocks in the economy.
|