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- W3207737214 abstract "We quantify the effects of wage bargaining shocks on macroeconomic aggregates using a structural vector auto-regression model for Germany. We identify exogenous variation in bargaining power from episodes of minimum wage introduction and industrial disputes. This narrative information disciplines the impulse responses to a wage bargaining shock of un-employment and output, and sharpens inference on the behaviour of other variables. The implied transmission mechanism is in line with the theoretical predictions of a large class of search and matching models. We also find that wage bargaining shocks explain a sizeable share of aggregate fluctuations in unemployment and inflation, that their pass-through to prices is very close to being full, and that they imply plausible dynamics for the vacancy rate, firms’ profits, and the labour share. JEL Classification: J2, J3, E32, C32" @default.
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- W3207737214 date "2021-01-01" @default.
- W3207737214 modified "2023-09-23" @default.
- W3207737214 title "Striking a Bargain: Narrative Identification of Wage Bargaining Shocks" @default.
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- W3207737214 doi "https://doi.org/10.2139/ssrn.3939316" @default.
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