Real wage overhang (1 Viewer)

[Silver Persian]

Could someone please tell me what it is? :apig:

 

[KungPow]

Isn't it just the opposite of partial indexation?

 

[Silver Persian]

What is partial indexation?

 

[KungPow]

Anyone correct me if im wrong but it's when real wages rise slower than inflation. Or is it the other way around?

 

[Oz]

real wage overhang is were real wages grow faster than productivity causing a shift in income distribution from profits to wages which creates unemployment. happened during the 70's

hope that helped
-Oz