Causes and Macroeconomic Consequences of Time Variations in Wage Indexation

This dissertation consists of four related papers investigating the causes and consequences of time variations in the degree of wage indexation. Both empirical (structural) estimation and theoretical approaches are adopted in the investigation of the subject. Chapter 2 and Chapter 3 explore the causes while Chapter 3, Chapter 4 and Chapter 5 investigate the consequences.

The main findings of this dissertation are as follows. Trend inflation is the most significant variable influencing the level of wage indexation while labour market institutional variables regarding wage (indexation) negotiations explain the variances of wage indexation and of inflation. The possibility of heavy-tailed distributed macroeconomic variables is the main consequence of time variations in wage indexation.