Real Wage Resistance and Unemployment: Multivariate Analysis of Cointegrating Relations in 10 OECD Countries
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Over the past twenty years or so, unemployment has been increasing in most OECD economies. In the same period, there has been a considerable increase in the wedge between the real cost to the employer of hiring a worker and the net real wage received by the worker. The present study examines whether changes in the wedge (including various tax...
