| Author (Person) | Orlandi, Fabrice, Roeger, Werner, Thum-Thysen, Anna |
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| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
| Publisher | Publications Office of the European Union |
| Series Title | European Economy: Discussion Papers |
| Series Details | Number 85 |
| Publication Date | 21/09/2018 |
| ISBN | 978-92-79-77422-5 |
| ISSN | 2443-8022 |
| Content Type | Research Paper |
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Summary: In this paper we compare the accelerationist Phillips curve to the New-Keynesian Wage Phillips curve in Euro Area countries which went through major swings in the unemployment rate in recent years. We find that the New-Keynesian wage Phillips curve signals cyclical fluctuations in unemployment more clearly and yields less pro-cyclical estimates of the NAWRU in four crisis-hit EU member states (Greece, Spain, Ireland and Portugal) than a traditional Phillips curve model, which may not treat price rigidities adequately. Slightly augmenting the NKP model by allowing for real wage rigidities further improves the extraction of a cyclical unemployment component. |
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| Source Link |
Link to Main Source
https://ec.europa.eu/info/publications/economy-finance/return-european-wage-phillips-curve_en
Alternative sources
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| Subject Categories | Employment and Social Affairs |
| Countries / Regions | Europe |
| International Organisations | European Union [EU] |
