Wage Growth and the Inflationary Process: A Reexamination

This chapter describes France as apparently one of the few rich countries to have avoided a significant increase in income inequality in recent decades. However, stable average inequalities mask an asymmetric trend of income between age groups, the elderly improving their situation while the young see theirs worsening. Furthermore, it shows that behind this relatively still surface, a general trend of precarization of more and more ordinary workers is occurring. The importance of wage-setting processes and of regulation of the labour market is brought out, together with the way the tax and transfer systems have operated, in restraining the forces driving inequality upwards. Wage growth, while limited, has thus been reasonably uniform across the distribution and together with the redistributive system have kept household income inequality within bounds. However, in response to high unemployment both regulatory and tax–transfer systems have served to underpin the very rapid growth in precarious working over the last decade, representing a very serious challenge for policy.

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Farm wages and public works

Indian Growth and Development Review ◽

10.1108/igdr-06-2013-0025 ◽

2015 ◽

Vol 8 (1) ◽

pp. 19-72 ◽

Cited By ~ 3

Author(s):

Kanika Mahajan

Keyword(s):

Theoretical Model ◽

Wage Rate ◽

Fixed Effects ◽

Positive Impact ◽

Wage Growth ◽

State Level ◽

Random Allocation ◽

Farm Sector ◽

Content Type ◽

The Impact

Purpose – The purpose of this paper is to examine the impact of National Rural Employment Guarantee Scheme (NREGS) on farm sector wage rate. This identification strategy rests on the assumption that all districts across India would have had similar wage trends in the absence of the program. The author argues that this assumption may not be true due to non-random allocation of districts to the program’s three phases across states and different economic growth paths of the states post the implementation of NREGS. Design/methodology/approach – To control for overall macroeconomic trends, the author allows for state-level time fixed effects to capture the differences in growth trajectories across districts due to changing economic landscape in the parent-state over time. The author also estimates the expected farm sector wage growth due to the increased public work employment provision using a theoretical model. Findings – The results, contrary to the existing studies, do not find support for a significantly positive impact of NREGS treatment on private cultivation wage rate. The theoretical model also shows that an increase in public employment work days explains very little of the total growth in cultivation wage post 2004. Originality/value – This paper looks specifically at farm sector wage growth and the possible impact of NREGS on it, accounting for state specific factors in shaping farm wages. Theoretical estimates are presented to overcome econometric limitations.

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Minimum Wages, On‐the‐Job Training, and Wage Growth

Southern Economic Journal ◽

10.1002/j.2325-8012.1999.tb00175.x ◽

1999 ◽

Vol 65 (3) ◽

pp. 539-556

Author(s):

Adam J. Grossberg ◽

Paul Sicilian

Keyword(s):

Job Training ◽

Wage Growth ◽

Minimum Wages ◽

On The Job Training

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Wage Posting and Business Cycles

The American Economic Review ◽

10.1257/aer.p20161051 ◽

2016 ◽

Vol 106 (5) ◽

pp. 208-213 ◽

Cited By ~ 5

Author(s):

Giuseppe Moscarini ◽

Fabien Postel-Vinay

Keyword(s):

Time Series ◽

Business Cycles ◽

Unemployment Rate ◽

Job Search ◽

Wage Growth ◽

Program Participation ◽

Average Wage ◽

Micro Data ◽

Natural Connection ◽

Monetary Authorities

The canonical model of job search and wage posting (Burdett and Mortensen, 1998) establishes a natural connection between the average wage growth in the economy and the pace of Employer-to-Employer (EE) transitions, predicting wage growth to be positively related to the pace of EE reallocation for all workers, but especially for stayers. We verify this empirically both with aggregate time series and with longitudinal micro data from the Survey of Income and Program Participation (SIPP). We argue that monetary authorities concerned with inflationary wage pressure should pay more attention directly to EE reallocation and less to the unemployment rate.

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Effects of Industry Growth and Decline on Gender and Education Wage Gaps in the 1980S

ILR Review ◽

10.1177/001979390505800402 ◽

2005 ◽

Vol 58 (4) ◽

pp. 552-570 ◽

Cited By ~ 7

Author(s):

Paul J. Devereux

Keyword(s):

Longitudinal Data ◽

Wage Growth ◽

Wage Gaps ◽

Industry Growth ◽

Industrial Composition ◽

Relative Wages ◽

Gender And Education ◽

The Individual ◽

Demand Changes

The author uses longitudinal data to study the effects of industry growth and decline on wage changes between 1976 and 2001. He finds that over this period, workers who were initially in industries that subsequently expanded enjoyed faster wage growth than other workers. Moreover, wage growth was strongly related to employment changes in industries the individual was likely to move to: that is, workers' wage growth tended to be relatively fast if their skills suited them for entry into rapidly expanding industries, whether or not they actually moved between industries. The author uses the estimates to evaluate the effects of industry demand changes on within-cohort relative wages during the 1980s. He finds that changes in industrial composition can account for most of the within-cohort increase in the wages of women relative to men and about 30–50% of the increase in the relative wages of more educated groups within cohorts.

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