To converge or not converge: unit labor cost inflation in the Euro area

Herwartz, Helmut; Siedenburg, Florian

doi:10.1007/s00181-011-0535-3

Cited by 8 publications

(1 citation statement)

References 19 publications

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“…Finally, a work similar to our is a recent paper of Herwartz and Siedenburg (2011) which test convergence of ination dierentials in the monetary union using monthly relative normalized ULC indices for the manufacturing sector only from the IMF's international nancial statistics, for Austria, Belgium, Finland, France, Germany, Ireland, Italy, and Spain. Similarly to ours, they use manufacturing sector data, interpreting ULC ination dierentials in this sector as a direct indicator of the relative evolution of external competitiveness within the monetary union.…”

Section: Introductionmentioning

confidence: 96%

Till Labor Cost Do Us Part. On the Long Run Convergence of EMU Countries

Pancotto

Pericoli

2011

SSRN Journal

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A sustainable long-run pattern in the relative competitiveness of euro area countries is a key factor for the survivorship of the monetary union. We analyze the issue focussing on unit labor cost dynamics using cointegration analysis for the whole economy and for the manufacturing sector separately. Our ndings show that the introduction of the euro has increased, rather than decreased, the distance among member countries, as measured in the metric of unit labor costs. Dispersion of productivity rather than wage compensation suggests that persisting idiosyncratic dynamics are driven by real factors, i.e. diverging technological patterns rather than by monetary factors, expressed by wage compensation.

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Section: Introductionmentioning

confidence: 96%

Till Labor Cost Do Us Part. On the Long Run Convergence of EMU Countries

Pancotto

Pericoli

2011

SSRN Journal

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Is productivity diverging in the EU? Evidence from 11 Member States

Emvalomatis

2016

Empir Econ

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An argument that received a lot of attention in the political and economic discussion surrounding the recent crisis in the EU is that diverging trends in productivity across member countries will undermine the viability of the common currency. This article examines the issue of convergence in multifactor productivity using sectorlevel data from 11 EU Member States. A state-space model is developed, and formal Bayesian model comparisons are performed to infer whether productivity is diverging, both at the aggregate level and at a sector-by-sector basis. The data point toward diverging productivity at the aggregate level, but suggest the opposite for many individual sectors.

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Till labor cost do us part

Pancotto

Pericoli

2013

Int Econ Econ Policy

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To converge or not converge: unit labor cost inflation in the Euro area

Cited by 8 publications

References 19 publications

Till Labor Cost Do Us Part. On the Long Run Convergence of EMU Countries

Till Labor Cost Do Us Part. On the Long Run Convergence of EMU Countries

Is productivity diverging in the EU? Evidence from 11 Member States

Till labor cost do us part

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