Have greed and rapidly rising wages triggered a profit-wage-price spiral? Firm-level evidence for Belgium

Our study of Belgian firms found that 2022 price increases were largely attributable to rising intermediate input costs. Wage increases also contributed to prices hikes. Interestingly, markups appeared to play no role in driving up prices and in fact decreased or even offset the contribution of wages. In a country with automatic wage indexation, this is an important point for discussion in the debate on the profit-price or wage-price spiral.

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Year of publication:	2023
Authors:	Bijnens, Gert ; Duprez, Cédric ; Jonckheere, Jana
Publisher:	Brussels : National Bank of Belgium
Subject:	markups \| greedflation \| wages \| profits \| wage-price spiral \| profit-wage-price spiral \| profit-price spiral

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Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	hdl:10419/272784 [Handle] RePEc:zbw:esprep:272784 [RePEc]
Classification:	d22 ; D4 - Market Structure and Pricing ; E3 - Prices, Business Fluctuations, and Cycles ; J3 - Wages, Compensation, and Labor Costs ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms
Source:	EconStor

Persistent link: https://www.econbiz.de/10014299394