TY - BOOK ID - 137491281 TI - Evolving Wage Cyclicality in Latin America AU - Messina, Julian AU - Gambetti, Luca PY - 2014 PB - Washington, D.C., The World Bank, DB - UniCat KW - Bayesian Estimation KW - Downward Wage Rigidity KW - Economic Theory & Research KW - Environment KW - Environmental Economics & Policies KW - Governance KW - Indexation KW - Labor Markets KW - Labor Policies KW - Macroeconomics and Economic Growth KW - Real Wage Cyclicality KW - Social Protections and Labor KW - Time Varying Coefficients KW - Vector Autoregression KW - Youth & Governance UR - https://www.unicat.be/uniCat?func=search&query=sysid:137491281 AB - A vector autoregression model with time-varying coefficients is used to examine the evolution of wage cyclicality in four Latin American economies: Brazil, Chile, Colombia and Mexico, during the period 1980-2010. Wages are highly pro-cyclical in all countries up to the mid-1990s except in Chile. Wage cyclicality declines thereafter, especially in Brazil and Colombia. This decline in wage cyclicality is in accordance with declining real-wage flexibility in a low-inflation environment. Controlling for compositional effects caused by changes in labor force participation along the business cycle does not alter these results. ER -