TY  - RPRT
        AU  - D'Adamo, Gaetano
AU  - Rovelli, Riccardo
        TI  - Labour Market Institutions and Inflation Differentials in the EU
        PY  - 2015/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9389
        UR  - https://www.iza.org/publications/dp9389
        AB  - Adopting a simple Phillips curve framework, we show that different labour market institutions across EU countries are associated with significant differences in the response of inflation to unemployment and exchange rate shocks. More wage coordination and higher union density flatten the Phillips curve and increase the inflation response to the real exchange rate, i.e. the exchange rate pass-through. In addition, using a new approach to the classification of goods and services as "traded" or "non-traded", we show that both these institutional effects are significantly stronger for the more exposed (traded) sector.
        KW  - sectoral inflation differentials
KW  - inflation determinants
KW  - labour market institutions
KW  - EU 27
        ER  -