In this paper, I examine the effect of tightness on wages in three Central European countries. The estimation is relevant for at least three reasons. Firstly, it is a novel exercise to check the implication of the Mortansen-Pissarides model on Central European data. Secondly, from the central...

The relationship between wages, prices, productivity, inflation, and unemployment in Italy, Poland, and the UK between the 1960's and the early 1990's is modelled as a cointegrated vector autoregression subject to regime shifts. For each of these economies there is clear evidence of a change in...