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Wage dispersion and inflation: evidence from UK manufacturing industries

Smith, Peter N. and Thomas, Stephen H. (1991) Wage dispersion and inflation: evidence from UK manufacturing industries Economics Letters, 37, (4), pp. 357-362. (doi:10.1016/0165-1765(91)90071-R).

Record type: Article


We specify a model relating wage dispersion across 16 sectors of UK manufacturing to a rich array of sector specific and macroeconomic variables. We find sectoral vacancy dispersion, a trade-union power proxy, short-run unemployment, and inflation affect wage dispersion. In particular, we find a strong negative relation between wage dispersion and inflation surprises within a well-specified model, reinforcing similar findings for the US and Israel.

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Published date: 1991


Local EPrints ID: 37389
ISSN: 0165-1765
PURE UUID: e2c6af9f-665f-4229-8289-5f89084b94bc

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Date deposited: 28 Feb 2007
Last modified: 17 Jul 2017 15:42

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Author: Peter N. Smith
Author: Stephen H. Thomas

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