Who Ultimately Bears the Burden of Greater Non-Wage Labour Costs?

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Azémar, Céline and Desbordes, Rodolphe (2010) Who Ultimately Bears the Burden of Greater Non-Wage Labour Costs? Discussion paper. University of Strathclyde, Glasgow.

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Abstract

We investigate the effect of a rise in non-wage labour costs (NWLC) on real manufacturing labour costs in OECD countries, taking into account the degree of coordination in the wage bargaining process. We find that, in countries in which wage bargaining is not highly coordinated, 55% of an increase in NWLC appears to be shifted to workers in the long run, whereas in countries operating under a highly coordinated bargaining regime, full shifting occurs. Overall, our results suggest that high NWLC can be associated with a high equilibrium unemployment rate, but only in those OECD countries that do not have highly coordinated wage bargaining.

ORCID iDs

Azémar, Céline and Desbordes, Rodolphe ORCID logoORCID: https://orcid.org/0000-0001-8923-5401;
  • Item type:Monograph(Discussion paper)
    ID code:67846
    Dates:
    Date
    Event
    9 March 2010
    Published
    Notes:Published as a paper within the Discussion Papers in Economics, No. 10-04 (2010). This paper was originally prepared for the IFS/ETPF conference “The Impact and Design of Business Taxation in a Globalised World”, London April 27, 2009.
    Subjects:Social Sciences
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:14 May 2019 14:55
    Last modified:12 Dec 2024 01:50
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/67846
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