Wage Rigidity and Disinflation in Emerging Countries
No hay miniatura disponible
Fecha
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
This paper examines the consequences of
rapid disinflation for downward wage rigidities in two
emerging countries, Brazil and Uruguay, relying on high
quality matched employer-employee administrative data.
Downward nominal wage rigidities are more important in
Uruguay, while wage indexation is dominant in Brazil. Two
regime changes are observed during the sample period,
1995-2004: (i) in Uruguay wage indexation declines, while
workers' resistance to nominal wage cuts becomes more
pronounced; and (ii) in Brazil, the introduction of
inflation targeting by the Central Bank in 1999 shifts the
focal point of wage negotiations from changes in the minimum
wage to expected inflation. These regime changes cast doubts
on the notion that wage rigidity is structural in the sense
of Lucas (1976).
Palabras clave
ADVERSE SELECTION, AGED WORKERS, AGRICULTURE, BARGAINING POWER, BASE YEAR, BENCHMARK, BUSINESS CYCLES, CENTRAL BANK, CPI, DECENTRALIZATION, DEVELOPED COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DISINFLATION, DOWNWARD BIAS, EARNING, ECONOMIC ACTIVITY, EDUCATIONAL ATTAINMENT, EFFICIENCY WAGES, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, EMPLOYEE, EMPLOYMENT, EQUILIBRIUM UNEMPLOYMENT, ESTIMATED PROBABILITY, EXPECTED WAGE, FIRM LEVEL, FISHING, FORECASTS, FORESTRY, FUTURE RESEARCH, GROWTH RATE, HUMAN CAPITAL, INCOME, INCOME COUNTRIES, INDEXATION, INFLATION RATE, INFLATION RATES, JOBS, LABOR CONTRACT, LABOR CONTRACTS, LABOR COST, LABOR ECONOMICS, LABOR FORCE, LABOR MARKET, LABOR MARKET INSTITUTIONS, LABOR MARKETS, LABOR TURNOVER, LAYOFFS, MACROECONOMIC EFFECTS, MACROECONOMIC STABILIZATION, MACROECONOMICS, MENU COSTS, MINIMUM WAGE, MINIMUM WAGES, MONETARY POLICY, NOMINAL WAGES, OCCUPATION, PAYING JOB, POLICY ENVIRONMENT, POLITICAL ECONOMY, PREVIOUS DISCUSSION, PREVIOUS SECTION, PREVIOUS STUDIES, PRICE CHANGES, PRICE SETTING, PRIVATE SECTOR, PRIVATE SECTOR WORKERS, PRODUCTIVITY, REAL GDP, REAL WAGE, SALARY, SEVERANCE PAYMENTS, TAXABLE INCOME, TROUGH, UNEMPLOYMENT, UNION DENSITY, WAGE BARGAINING, WAGE DATA, WAGE DETERMINATION, WAGE DISTRIBUTION, WAGE FLEXIBILITY, WAGE GROWTH, WAGE INCREASE, WAGE INCREASES, WAGE LEVEL, WAGE LEVELS, WAGE NEGOTIATIONS, WAGE RIGIDITIES, WAGE RIGIDITY, WHITE COLLAR WORKER, WHITE COLLAR WORKERS, WORKER, WORKERS, YOUNG WORKERS, YOUNGER WORKERS