In the 1980s, real consumption wages fell relative to labour efficiency in OECD countries, although there has been some pressure on wages recently. The persistent moderation of wages was due to labour-market slack, as well as rising non-wage labour costs and slower increases in output prices...

This paper presents work on wage/price blocks for the smaller OECD countries which has been implemented in OECD's world econometric model, INTERLINK. The paper discusses theoretical, statistical and practical aspects of the estimation of business sector wage equations and five domestic demand...