Hidden Bibliographic Details
| Other authors / contributors: | Estev�ao, Marcello M.
International Monetary Fund. European Department, issuing body.
|
|---|
| ISBN: | 1283307197
9781283307192
9781451907469
145190746X
1462381103
9781462381104
1452769338
9781452769332
9786613823502
6613823503
|
|---|
| Notes: | Includes bibliographical references (pages 28-29).
English.
Print version record.
|
|---|
| Summary: | Euro-area real wages have decelerated sharply in the last 20 years, but this has not yet translated into visibly lower unemployment or faster growth. Weak output growth after such a cost shock is somewhat puzzling and has led some to question the benefits of wage moderation. By isolating structural from cyclical factors in a panel of industrial countries, I show that structurally slower real wage growth, that is, "wage moderation," does raise output growth and lower unemployment rates. However, I show that the impact on both variables depends crucially on product market regulation: weaker competition and barriers to entry mute the growth effects of structural real wage changes by allowing incumbent firms to appropriate larger rents. In this context, overly regulated product markets in the euro area are undermining the effects of labor market reforms on output and employment
|
|---|
| Other form: | Print version: Estevão, Marcello M. Product market regulation and the benefits of wage moderation. [Washington, D.C.] : International Monetary Fund, European Dept., 2005
|
|---|
