Price and Wage Flexibility in Hong Kong SAR

January 20, 2017

Preview Citation

Format: Chicago

Si Guo. Price and Wage Flexibility in Hong Kong SAR, (USA: International Monetary Fund, 2017) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The paper assesses the price and wage flexibility in Hong Kong SAR. At the aggregate level, it compares Hong Kong SAR with the United States, the United Kingdom and Singapore by examining the three commonly used macroeconomic relationships among inflation, unemployment, wage growth, and output fluctuations. At the industry level, the paper compares the distributions of labor earnings and price growth in Hong Kong SAR and the United States. It further estimates a model of wage formation under downward nominal wage rigidity to compare the extent of wage rigidity in Hong Kong SAR and the United States. Overall, the comparisons show that broadly speaking, price and wage adjustments are more flexible in Hong Kong SAR than other economies.

Subject: Labor, Labor markets, Price adjustments, Prices, Wage adjustments, Wages

Keywords: Census and Statistics Department of Hong Kong SAR, Earnings growth, Earnings statistics, Equilibrium wage growth in industry, Flexibility, Flexibility in Hong Kong SAR, Hong Kong SAR, Inflation, Labor earnings growth, Labor markets, Nominal wage, Price adjustments, Wage, Wage adjustments, Wage growth, Wage rigidity, Wage system, Wages, WP

Publication Details

Pages:

19
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2017/009
Stock No:

WPIEA2017009
ISBN:

9781475570397
ISSN:

1018-5941

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