%0 Report
        %A Gambetti, Luca
%A Messina, Julián
        %T Evolving Wage Cyclicality in Latin America
        %D 2017
        %8 2017 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 10657
        %U https://www.iza.org/publications/dp10657
        %X Examines the evolution of the cyclicality of real wages and employment in four Latin American economies: Brazil, Chile, Colombia and Mexico, during the period 1980-2010. Wages are highly pro-cyclical during the 1980s and early 1990s, a period characterized by high inflation. As inflation declined wages became less pro-cyclical, a feature that is consistent with emerging downward wage rigidities in a low inflation environment. Compositional effects associated with changes in labor participation along the business cycle appear to matter less for estimates of wage cyclicality than in developed economies. 
        %K downward wage rigidity
%K indexation
%K real wage cyclicality
%K vector autoregression
%K time varying coefficients
%K Bayesian estimation