TY  - RPRT
        AU  - Gambetti, Luca
AU  - Messina, Julián
        TI  - Evolving Wage Cyclicality in Latin America
        PY  - 2017/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10657
        UR  - https://www.iza.org/publications/dp10657
        AB  - 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. 
        KW  - downward wage rigidity
KW  - indexation
KW  - real wage cyclicality
KW  - vector autoregression
KW  - time varying coefficients
KW  - Bayesian estimation
        ER  -