Pattern bargaining and wage leadership in a small open economy

  • Lars Calmfors Anna Larsson CESIFO
  • Published 2011


Pattern bargaining with the tradables (manufacturing) sector as wage leader is a common form of wage bargaining in Europe. We question the conventional wisdom that such bargaining produces wage restraint. In our model all forms of pattern bargaining give the same outcomes as uncoordinated bargaining under inflation targeting. Under monetary union wage… (More)

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