Holm-Hadulla, Fédéric; Kamath, Kishore; Lamo, Ana; … - 2010
area. Recent empirical evidence suggests that government wage expenditure is subject to a pro-cyclical bias in most euro … area countries and at the euro area aggregate level. Moreover, the evidence points to a strong positive correlation and co …This paper examines the role of government wages in ensuring macroeconomic stability and competitiveness in the euro …