A sustainable long-run pattern in the relative competitiveness of Euro area countries is a key factor for the survival of the monetary union. We analyse the issue focussing on unit labour cost dynamics using cointegration analysis for the whole economy and for the manufacturing sector separately. Our findings show that the introduction of the Euro has increased, rather than decreased, the distance among member countries, as measured in the metric of unit labour 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.

Till Labor Cost Do Us Part / Pancotto, Francesca; Filippo, Pericoli. - In: INTERNATIONAL ECONOMICS AND ECONOMIC POLICY. - ISSN 1612-4804. - STAMPA. - 11:3(2014), pp. 371-395. [10.1007/s10368-013-0258-3]

Till Labor Cost Do Us Part

PANCOTTO, Francesca;
2014

Abstract

A sustainable long-run pattern in the relative competitiveness of Euro area countries is a key factor for the survival of the monetary union. We analyse the issue focussing on unit labour cost dynamics using cointegration analysis for the whole economy and for the manufacturing sector separately. Our findings show that the introduction of the Euro has increased, rather than decreased, the distance among member countries, as measured in the metric of unit labour 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.
2014
11
3
371
395
Till Labor Cost Do Us Part / Pancotto, Francesca; Filippo, Pericoli. - In: INTERNATIONAL ECONOMICS AND ECONOMIC POLICY. - ISSN 1612-4804. - STAMPA. - 11:3(2014), pp. 371-395. [10.1007/s10368-013-0258-3]
Pancotto, Francesca; Filippo, Pericoli
File in questo prodotto:
File Dimensione Formato  
Pancotto_Pericoli_IEEP.pdf

Accesso riservato

Tipologia: Versione dell'autore revisionata e accettata per la pubblicazione
Dimensione 447.06 kB
Formato Adobe PDF
447.06 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
Pubblicazioni consigliate

Licenza Creative Commons
I metadati presenti in IRIS UNIMORE sono rilasciati con licenza Creative Commons CC0 1.0 Universal, mentre i file delle pubblicazioni sono rilasciati con licenza Attribuzione 4.0 Internazionale (CC BY 4.0), salvo diversa indicazione.
In caso di violazione di copyright, contattare Supporto Iris

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/688263
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 2
  • ???jsp.display-item.citation.isi??? ND
social impact