Skip to main content
Article
Testing for independence of wage drift and minimum contractual wage: An empirical investigation using Italian aggregate time series
Labour (1993)
  • Claudio Lupi, University of Molise
  • Patrizia Ordine, University of Calabria
Abstract

A theoretical two-stage bargaining model for wage drift and minimum contractual wage is discussed and its implication in terms of Granger-causality between the two variables is tested by using Italian aggregate time series. Empirical evidence suggests rejecting the independence of the two series. This result has, in turn, implications for policy analysis. Our findings seem to indicate the appropriateness of a policy oriented towards decentralized wage-setting.

Keywords
  • Wage,
  • Wage drift
Publication Date
1993
Citation Information
Claudio Lupi and Patrizia Ordine. "Testing for independence of wage drift and minimum contractual wage: An empirical investigation using Italian aggregate time series" Labour Vol. 7 Iss. 3 (1993)
Available at: http://works.bepress.com/claudio_lupi/24/