Inflation and the dispersion of real wages

• 成果类型: Article
• 署名作者: Kumar, Alok
• 署名单位: University of Victoria
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2008.00484.x
• 发表日期: 2008
• 页码: 377-399
• 关键词: equilibrium search model; prices; size

摘要

The article studies the effects of inflation on real wage dispersion in a search-monetary framework. The economy is characterized by frictions in both the goods and the labor markets. In the goods market, buyers and sellers bargain over prices, whereas in the labor market firms post wage offers. In equilibrium, a lower inflation rate increases the dispersion of real wages. This result is consistent with both the observed trends in wage dispersion and the inflation rate witnessed in the 1980s and the 1990s in the United States and the empirical literature linking reduced inflation to greater wage dispersion.