Arbeitspapier
Fixed wage contracts and monetary non-neutrality
We study the importance of wage rigidities for the monetary policy transmission mechanism. Using uniquely rich micro data on Swedish wage negotiations, we isolate periods when the labor market is covered by fixed wage contracts. Importantly, negotiations are coordinated in time but their seasonal patterns are far from deterministic. Using a VAR model, we document that monetary policy shocks have a substantially larger impact on production during fixed wage episodes as compared to the average response. The results are not driven by the periodic structure, nor the seasonality, of the renegotiation episodes.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 2016:10
- Classification
-
Wirtschaft
Macroeconomics: Production
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Central Banks and Their Policies
Labor Contracts
- Subject
-
Monetary Policy
Wages
Nominal rigidities
Micro-data
- Event
-
Geistige Schöpfung
- (who)
-
Björklund, Maria
Carlsson, Mikael
Nordström Skans, Oskar
- Event
-
Veröffentlichung
- (who)
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Uppsala University, Department of Economics
- (where)
-
Uppsala
- (when)
-
2016
- Handle
- URN
-
urn:nbn:se:uu:diva-301159
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Björklund, Maria
- Carlsson, Mikael
- Nordström Skans, Oskar
- Uppsala University, Department of Economics
Time of origin
- 2016
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