This paper examines the short-run relationship between the income distributionand finance-growth regimes using a simple post-Keynesian demand-driven model. While each mechanism of wage-led and profit-led growth has been revealed, its relationship with debt-led and debt-burdened growth, and vice versa, is yet to be clarified. This is because the argument on these growth regimes has been develope...

Gender wage and employment gaps are negatively correlated across countries. We argue that non-random selection of women into work explains an important part of such correlation and thus of the observed variation in wage gaps. The idea is that, if women who are employed tend to have relatively high-wage characteristics, low female employment rates may become consistent with low gender wage gaps ...

The introduction of unemployment insurance savings accounts (UISA) in Chile in October 2002 led to more comprehensive unemployment protection while decreasing the opportunity cost of job change. Using a difference-in-differences approach this paper examines whether the introduction of UISA had an impact on the differences in subsequent wages and contract types of (i) workers changing into a new...

We assess the differences in downward nominal and real wage rigidity between natives and immigrants in Portugal, using a matched employer-employee database and the International Wage Flexibility Project (IWFP) methodology. This methodology estimates a notional or counterfactual distribution that would prevail under wage flexibility and compares it to the empirical wage distribution. The estimat...

This paper analyzes the impact of indexed wage contracts on inflation and social welfare in a Barro–Gordon model with state contingent monetary policy. Wage indexation reduces the inflation bias but may raise the variance of inflation rates. In social optimum wages are fully indexed to the price level, but this requires optimal wage adjustments to productivity shocks. If wage adjustments to pro...

The theoretical literature has argued that a centralized wage bargaining system may result in low regional wage differentiation and high regional unemployment differentials. The empirical literature has found that centralized wage bargaining leads to lower wage inequality for different skills, industries and population groups, but the evidence on its impact on regional wage differentiation is s...

Bargained Wages, Wage Drift and the Design of the Wage Setting System This paper aims at answering the question: How does a typically 'European' bargaining system with collective bargaining, extension mechanisms and national minimum wage coexist with low unemployment rate and high wage flexibility? A unique data set on workers, firms and collective bargaining contracts in the Portuguese economy...

Wage Distributions by Bargaining Regime: Linked Employer-Employee Data Evidence from Germany Using linked employer-employee data from the German Structure of Earnings Survey 2001, this paper provides a comprehensive picture of the wage structure in three wage-setting regimes prevalent in the German system of industrial relations. We analyze wage distributions for various labor market subgroups ...

Both human capital accumulation and Lazear contracts can explain the raising wage of salary/wage worker through job experience or tenure. To distinguish between these two effects, Lazear and Moore (1984) used self-employed workers’ wage growth to partial out the effect of human capital accumulation from salary/wage workers’ wage growth. When the human capital accumulation behavior is identical ...