Modelling Shifts in the Wage-Price and Unemployment-Inflation Relationships in Italy, Poland, and the UK

Abstract

The relationship between wages, prices, productivity, inflation, and unemployment in Italy, Poland, and the UK between the 1960's and the early 1990's is modelled as a cointegrated vector autoregression subject to regime shifts. For each of these economies there is clear evidence of a change in the underlying equilibria of this sector of the economy. Hypotheses concerning the similarity of the transition from a rigid to a flexible labour market are tested.

On the dynamics of unemployment in a developing economy: Colombia

“…al. (1991); see also Marcellino and Mizon (2000) and the references therein. The variables used in the model are average wages in current prices ( t w ), prices as measured by the consumer price index ( t p ), labour productivity ( t prod ) calculated as the ratio of total constant price GDP to employment, and the rate of unemployment ( t U ).…”