Who Ultimately Bears the Burden of Greater Non-Wage Labour costs?
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: https://orcid.org/0000-0001-8923-5401;-
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Item type: Monograph(Discussion paper) ID code: 67846 Dates: DateEvent2010PublishedNotes: 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: 02 Sep 2024 01:09 URI: https://strathprints.strath.ac.uk/id/eprint/67846