El Ajuste al Equilibrio a Largo Plazo de los Salarios en España

Abstract

This paper provides empirical evidence about the relationship between wages and their determinants in the Spanish economy from a macroeconomic perspective, as well as about the adjustment speed back to long run equilibrium, estimating an error correction mechanism by non-linear methods. The results reveal that the unemployment rate and the bargaining variables have no effect on the evolution of wages. The variable that explains the evolution of wages in the long term is prices, with wages showing slightly inflationary behavior. In the short term, wages are explained by their past values, reflecting a nominal inertia