Public wage and pension indexation in the euro area: An overview

Bericht

If the responses of wages - both private and public - and of pensions to an increase in inflation lead to second-round effects, this can make an inflationary shock more persistent, especially in the presence of automatic wage and pension indexation. This occasional paper presents an overview of the indexation schemes and other mechanisms for setting public wages and pensions across the euro area countries. It concludes that price indexation of public wages is relatively limited in the euro area, while public pensions are overwhelmingly automatically indexed, either fully or partially, to prices and wages.

Object Details

• ISBN: 978-92-899-5240-8
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Occasional Paper ; No. 299

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; Social Security and Public Pensions ; Price Level; Inflation; Deflation
• Subject: Fiscal policy ; Wages, Compensation, and Labor Costs ; Social Securityand Public Pensions ; Inflation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Checherita-Westphal, Cristina
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2022

Further information

• DOI: doi:10.2866/515428
• Handle: http://hdl.handle.net/10419/268043
• Last update: 10.03.2025, 11:46 AM CET