This paper studies earnings inequality and dynamics in Argentina between 1996 and 2015. Following the 2001–2002 crisis, the Argentine economy transitioned from a low‐ to a high‐inflation regime, while collective bargaining and the minimum wage gained influence. This transition was...

This paper assesses the relationship between government and manufacturing wages. We find that the long-run relation between the two wages is stronger when the government is a large employer. Manufacturing wages are better aligned with productivity and unemployment when public wages, to which...

We study the link between expected inflation and wages using novel panel data from German firms and employees. We find that pass-through - the percentage point change in wage growth given a one percentage point change in expected inflation - is small: 0.11-0.17 for firms and 0.03-0.07 for...

We study the link between expected inflation and wages using novel panel data from German firms and employees. We find that pass-through—the percentage point change in wage growth given a one percentage point change in expected inflation—is small: 0.11–0.17 for firms and 0.03–0.07 for...

Drawing on data from 11 successive waves of yearly wage surveys carried out by the Public Employment Service in Hungary from 1992 to 2003, the paper examines, with the use of elementary statistical tools, whether or not earnings fluctuations differ in size across groups of employees with...

Using administrative data from Germany, this paper analyzes the relation between wages and past and current labor market conditions. Specifically, it explores whether the data is more consistent with implicit contract models (Beaudry/DiNardo, 1991) or a matching model with on-the-job search and...

A model of nominal labor-price dynamics is derived from the choice of an efficient strategy to adjust wages for inflation. The model, named the rational-arrangements Phillips curve, identifies a central role for catch-up to price inflation that has already occurred and a more latent role for...

This paper studies the effects of endogenous participation on unemployment fluctuations. It shows that the wage channel is the key to understanding them. Endogenous participation makes the expected outside options of workers countercyclical. Under Nash bargaining, this induces a countercyclical...

In this paper we present an extension of the Taylor model with staggered wages in which wage-setting is also influenced by reference norms (i.e. by benchmark wages). We show that reference norms can considerably increase the persistence of inflation and the extent of real wage rigidity but that...