DEVELOPMENT OF REAL UNIT WAGE COSTS ON THE MACRO- AND MEZO-LEVEL OF THE CZECH REPUBLIC

Bozena Kaderabkova; Emilie Jasova

doi:10.20472/ES.2019.8.2.004

Authors

Bozena Kaderabkova University of Economics in Prague, Fakulty of Economics, Czech Republic Author
Emilie Jasova Ministry of Labour and Social Affairs, Czech Republic Author

DOI:

https://doi.org/10.20472/ES.2019.8.2.004

Keywords:

Wage cost inflation pressures, Nominal unit wage costs, Real unit wage costs, Mezzo-level, Macro-level, Wage cost inflation potential

Abstract

The aim of the paper is to analyze the development and the level of cost inflation pressures originating from the labor market across different levels of the Czech Republic. First, several definitions of unit labor costs and the reasons for their analysis and monitoring are presented. Then, the concepts of nominal and real unit labor costs are selected, along with data for both the macro-level and mezzo-level in the Czech Republic. The development of the real unit labor cost indicator is evaluated at individual levels of the Czech Republic, and the extent of wage inflation pressures is assessed. Finally, initial evidence of the negative impact of wages on prices at the mezzo-level is identified, which can be used for forecasting developments in the national economy in the near future.

Data:
Received: 13 Sep 2019
Revised: 6 Nov 2019
Accepted: 6 Dec 2019
Published: 20 Dec 2019