TY  - BOOK
AU  - Card,David
ED  - National Bureau of Economic Research.
TI  - An Empirical Model of Wage Indexation Provisions in Union Contracts
T2  - NBER working paper series
PY  - 1984///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - June 1984; Hardcopy version available to institutional subscribers
N2  - Cost of living escalators are an important feature of North American labor contracts. This paper presents a measure of the response of index-linked wage increases to concurrent price increases for a sample of Canadian contracts, and then analyses this response in terms of a simple model of indexation to the aggregate price level. The model highlights the importance of aggregate price movements in conveying information about industry-specific prices. The empirical analysis confirms that industry-specific correlations between input and output prices and the Consumer Price Index are important determinants of the response of wage to prices across index contracts
UR  - https://www.nber.org/papers/w1388
UR  - http://dx.doi.org/10.3386/w1388
ER  -