Metadata record for Replication data for: Wage Rigidity and Disinflation in Emerging Countries
114284
Inter-university Consortium for Political and Social Research
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V1
Replication data for: Wage Rigidity and Disinflation in Emerging Countries
114284
http://doi.org/10.3886/E114284V1
Julián Messina
Anna Sanz-de-Galdeano
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Ann Arbor, MI: Inter-university Consortium for Political and Social Research
Messina, Julián, and Sanz-de-Galdeano, Anna. Replication data for: Wage Rigidity and Disinflation in Emerging Countries. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114284V1
E31 Price Level; Inflation; Deflation
E52 Monetary Policy
J31 Wage Level and Structure; Wage Differentials
J51 Trade Unio Objectives, Structure, and Effects
O11 Macroeconomic Analyses of Economic Development
O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
O23 Fiscal and Monetary Policy in Development
This paper examines the consequences of rapid disinflation for
downward wage rigidities in two emerging countries, Brazil and
Uruguay. Although wage rigidities are altered by disinflation, in
neither of the two countries does price stability eliminate frictions
in wage-setting mechanisms. In a context of individual wage
negotiations and weak unions, disinflation in Uruguay puts an end
to its history of indexation, but strong resistance to nominal wage
cuts emerges. In strongly unionized Brazil, wage indexation is highly persistent, but the introduction of inflation targeting by the Central Bank in 1999 moves the focal point of wage negotiations to expected inflation.