Nominal Wages, the Nairu and Wage Flexibility

Coe, David T (1985): Nominal Wages, the Nairu and Wage Flexibility. Published in: OECD Economic Studies No. No. 5 (1985): pp. 87-126.

Abstract

This paper analyses the historical determinants of nominal wages in eleven OECD economies, calculates unemployment rates consistent with stable inflation and derives specific measures of wage flexibility. A number of issues are addressed, including the linearity or non-linearity of the short-run Phillips curve, and the possible temporal dependence of the natural rate of unemployment on the actual rate, i.e., hysteresis in the natural rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: Nominal wage determination in eleven OECD countries; the NAIRU; hysteresis in the natural rate
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J39 - Other

References

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