Aggregate Wage Flexibility in Selected New EU Member States 15
For the rest of the sample the estimates of wage flexibility are not significantly different from
zero9.
Figure 4: Time-Varying Estimates of Real Wage Flexibility, 1995-2004
CE-4

ERM-II
Estonia
EMU-3
Austria


-.4*....................................
96 97 98 99 00 01 02 03 04
Greece
1.0

-1.5-
-2.0-1..................................
96 97 98 99 00 01 02 03 04
Poland Lithuania Portugal

.3
-.1-
-.2-
-.3.
.1 -
.0-



-.4-/
-.5-l..............................
97 98 99 00 01 02 03 04

Note: Kalman filter estimates of C2,t in eq. (4). Two standard error bands are plotted.
Negative and significant values of C2,t mean wage flexibility.
9 Belke and Setzer (2004) find that exchange rate volatility has a significant negative impact on employment
growth in Central and Eastern European countries, thus contributing to growth in unemployment. In what
follows, euro adoption, by eliminating exchange rate risk, can be viewed as a sort of active labor market policy, a
substitute for the removal of employment protection legislation.
More intriguing information
1. The name is absent2. The technological mediation of mathematics and its learning
3. Income Growth and Mobility of Rural Households in Kenya: Role of Education and Historical Patterns in Poverty Reduction
4. ASSESSMENT OF MARKET RISK IN HOG PRODUCTION USING VALUE-AT-RISK AND EXTREME VALUE THEORY
5. Change in firm population and spatial variations: The case of Turkey
6. International Financial Integration*
7. Input-Output Analysis, Linear Programming and Modified Multipliers
8. The fundamental determinants of financial integration in the European Union
9. An Investigation of transience upon mothers of primary-aged children and their school
10. The name is absent