OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Nominal Wage Determination in Ten OECD Economies

  1. The importance of wages in the analysis and forecasting of macroeconomic developments needs no emphasis. Nominal wage inflation is a crucial component of price inflation, while real wages importantly influence the demand for labour and for other factors of production. More generally, the way in which nominal wages are set is an important determinant of whether or not there is any short- or longer-run trade off between inflation and employment. The way that wages evolve in the current situation of recovering output and profits, where inflation has declined and unemployment remains high, will be critical in determining whether there are pressures which might contribute to a resurgence of inflation. This paper analyses the historical determinants of nominal wages in ten OECD economies and considers the implications for future wage, and hence inflation, developments.
  2. The Phillips curve represents a dynamic adjustment process of nominal wages to equilibrium and disequilibrium phenomena ...


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