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Wage flexibility and the EMU: a nonparametric and semiparametric analysis for the Spanish case.
- Source :
- Applied Economics Letters; 9/15/2006, Vol. 13 Issue 11, p733-736, 4p, 1 Chart, 3 Graphs
- Publication Year :
- 2006
-
Abstract
- According to OCA theory, the creation of the EMU reinforces the role of wage flexibility as an adjustment instrument alternative to the exchange rate in order to mitigate the negative effects of asymmetric shocks. This paper uses the case of Spain as the frame of reference within the EMU – in order to ensure data homogeneity – and examines wage flexibility in the Spanish provinces using both nonparametric and semiparametric techniques. The main result of the paper is that the labour market appears to be quite rigid and, therefore, adverse shocks could have serious consequences in the future. [ABSTRACT FROM AUTHOR]
- Subjects :
- WAGES
EURO
FOREIGN exchange rates
MONETARY policy
LABOR market
MONEY
ECONOMICS
Subjects
Details
- Language :
- English
- ISSN :
- 13504851
- Volume :
- 13
- Issue :
- 11
- Database :
- Complementary Index
- Journal :
- Applied Economics Letters
- Publication Type :
- Academic Journal
- Accession number :
- 22284834
- Full Text :
- https://doi.org/10.1080/13504850500407624