The Effects of Inflation and Real Wages on Employment

Bibliographic Data

ID9726971
AuthorsSushil Wadhwani (corresponding author), Sushil B Wadhwani
Year1987
Volume54
Issue213
Pages21
Publication date1987-02-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherJSTOR (PUBLISHER)
DOI10.2307/2554341
OpenAlexW2002496207
LanguageEN
Citations received3
References cited7

This paper considers the effects of inflation on employment. The absence of index-linked loans and the possibility that errors are committed in times of inflation, lead to a higher probability of bankruptcy during inflation. If firms care about bankruptcy, this implies a lower level of employment. Empirical results confirming this are presented, and suggest that higher inflation has substantially contributed to the fall in employment in the United Kingdom. The authors also demonstrate that a negative real-wage elasticity is not robust to changes in specification. Copyright 1987 by The Review of Economic Studies Limited

Bankruptcy · Economics · Index (typography) · Inflation (cosmology) · Labour economics · Monetary economics · Monetary policy · Real interest rate · Real wages · Wage · Finance · Housing Market and Economics · Housing, Finance, and Neoliberalism · Labor market dynamics and wage inequality

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