Essays on real wages and money
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This dissertation researches on real wage responses to money supply shocks across different countries and different industries. The real wage responses to nominal shocks at aggregate-level still remain an unsettled issue. Thus, I have built empirical models that can identify the real wage responses across Group-of-7 countries to find any general tendencies implicit in data as a first research. I have extended the estimation beyond the U.S. since not many economists have researched on the real wage responses for other countries. To this end, vector autoregression representations (VARs) of those 7 countries are built, from which relative stickiness of output price and wage is expected to be identified. As a second research, I have built a model for the estimation of sectoral real wage responses to the same money supply shocks across U.S. industries. Recently, a lot of economists have shown models in which supply-side channel of monetary shocks are more dominant over demand-side channel empirically. Using a similar VARs with longrun neutrality restrictions, I have found an empirical results that support those views on the monetary transmission.