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Empirica

, Volume 33, Issue 4, pp 231–243 | Cite as

Wages and productivity: the role of labour market institutions in OECD countries

  • Juan Carlos Duque
  • Raúl Ramos
  • Jordi Suriñach
Original paper

Abstract

In the context of a monetary union, to keep a territorial equilibrium in terms of economic activity and employment, the relationship between real wages and productivity is crucial. In this paper, empirical evidence about the response of wages to productivity is obtained for 20 OECD countries and the role of labour market institutions to explain differences in this response is analysed.

Keywords

Wages Productivity Labour Market Institutions Monetary Union 

JEL Codes

J50 J24 F33 

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Notes

Acknowledgments

Authors wish to thank two anonymous referees, the members of the European Forecasting Network and from the European Commission for helpful comments and suggestions. Support is gratefully acknowledged from CICYT SEJ2005-04348/ECON. The usual disclaimer applies.

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Copyright information

© Springer Science+Business Media, B.V. 2006

Authors and Affiliations

  • Juan Carlos Duque
    • 1
  • Raúl Ramos
    • 2
  • Jordi Suriñach
    • 2
  1. 1.Department of Geography, Regional Analysis Laboratory (REGAL)San Diego State UniversitySan DiegoUSA
  2. 2.Department of Econometrics, Statistics and Spanish EconomyGrup d’Anàlisi Quantitativa Regional, Universitat de BarcelonaBarcelonaSpain

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