Arbeitspapier
Does price stability exacerbate labour market rigidities in the EMU?
How will the commitment to price stability affect labour market rigidities in the European Monetary Union? I explore a model where firms choose between fixed wage contracts (where the employer cannot lay off the worker, and the wage can only be changed by mutual consent), or contracts where employment is at will, so that either party may terminate employment (with strong similarities to temporary jobs). A fixed wage contract provides better incentives for investment and training, while employment at will facilitates efficient mobility. Inflation erodes the real value of a fixed contract wage over time, and badly matched workers are more likely to quit for other jobs. Disinflation has opposing effects on labour market rigidity: fixed wage contracts become more rigid in real terms, but fewer firms will choose fixed wage contracts.
- Sprache
-
Englisch
- Erschienen in
-
Series: Memorandum ; No. 2001,10
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Monetary Policy
Labor Law
- Thema
-
Nominal wage rigidity
inflation
employment contracts
training
EMU
Preisniveaustabilität
Lohnrigidität
Wirkungsanalyse
Arbeitsmarktflexibilisierung
Europäische Wirtschafts- und Währungsunion
EU-Staaten
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Holden, Steinar
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Oslo, Department of Economics
- (wo)
-
Oslo
- (wann)
-
2001
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Holden, Steinar
- University of Oslo, Department of Economics
Entstanden
- 2001
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