Recent research has examined the link between rising educational attainment and its impact on inflation, via the equilibrium rate of unemployment. Studies such as Daly et al. (2007) have found that a measure of aggregate unemployment that has been adjusted for changes in the educational...

This paper examines the long-run relationship between inflation and a new measure of the price-marginal cost markup. This new markup index is derived while accounting for labor adjustment costs, which a large number of the papers that estimate the markup have ignored. We then examine the...