Arbeitspapier
Labor cost pass-through to producer prices in Denmark
We estimate the pass-through of a cost-push wage shock to producer prices of firms in Denmark. We deal with the endogeneity of wages by using an identification strategy based on variation in the estimated outside option of workers within an industry. Our results suggest that the pass-through elasticity of wage increases to prices amounts to about one third when keeping the marginal product of labor constant. Our results are in line with previous studies of earlier time periods and confirm an important causal relationship between wages and prices.
- Language
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Englisch
- Bibliographic citation
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Series: Danmarks Nationalbank Working Papers ; No. 166
- Classification
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Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Monetary Policy
Production, Pricing, and Market Structure; Size Distribution of Firms
- Subject
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Wage pass-through
Phillips curve
Producer prices
- Event
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Geistige Schöpfung
- (who)
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Hviid, Simon Juul
Renkin, Tobias
- Event
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Veröffentlichung
- (who)
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Danmarks Nationalbank
- (where)
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Copenhagen
- (when)
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2020
- Handle
- Last update
-
10.03.2025, 11:41 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
- Hviid, Simon Juul
- Renkin, Tobias
- Danmarks Nationalbank
Time of origin
- 2020
Other Objects (12)
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Estimates of cost-price passthrough from business survey data
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How rigid are producer prices?
Pass-Through of Cost-Push Shocks
Selection effects in producer-price setting
Selection effects in producer-price setting
Costs, demand, and producer price changes
Using Cost Pass-Through to Calibrate Demand
Market structure and cost pass-through in retail
Producer price inflation connectedness and input-output networks
Determinants of consumer price inflation versus producer price inflation in Asia
Producer Prices in the Transition to a Common Currency
Estimates of cost-price passthrough from business survey data
Estimates of cost-price passthrough from business survey data
How rigid are producer prices?
Pass-Through of Cost-Push Shocks
Selection effects in producer-price setting
Selection effects in producer-price setting
Costs, demand, and producer price changes
Using Cost Pass-Through to Calibrate Demand
Market structure and cost pass-through in retail
Producer price inflation connectedness and input-output networks
Determinants of consumer price inflation versus producer price inflation in Asia