Evolving Wage Cyclicality in Latin America

• Tác giả: Luca Gambetti
• Ngôn ngữ: eng
• Ký hiệu phân loại: 331.29 Historical, geographic, persons treatment of compensation
• Thông tin xuất bản: World Bank Group, Washington, DC, 2014
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 327847
• Chủ đề: 1. ACCOUNTING; 2. AUTOREGRESSION; 3. BUSINESS CYCLE; 4. BUSINESS CYCLES; 5. CENTRAL BANK

Tóm tắt

A vector autoregression model with time-varying coefficients is used to examine the evolution of wage cyclicality in four Latin American economies: Brazil, Chile, Colombia and Mexico, during the period 1980-2010. Wages are highly pro-cyclical in all countries up to the mid-1990s except in Chile. Wage cyclicality declines thereafter, especially in Brazil and Colombia. This decline in wage cyclicality is in accordance with declining real-wage flexibility in a low-inflation environment. Controlling for compositional effects caused by changes in labor force participation along the business cycle does not alter these results.