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CREA study on salary indexation challenges traditional ideas

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Veröffentlicht am Freitag, den 18. Juli 2014

The Centre for Research in Economics and Management of the University of Luxembourg recently carried out a study on behalf the Luxembourg government’s “Observatoire de la compétivité du ministère de l’Economie.”  Led by Prof Arnaud Bourgain and Prof Henri Sneesens, the study took the form of a comparative analysis of four European countries – Luxembourg, Belgium, Germany and France - on the issue of the setting and automatic indexation of salaries. 

The automatic indexation of salaries is often criticised for being a key source of inflexibility of real wages and blamed as a factor that makes Luxembourg less competitive in terms of business costs. The object of the study, then, was to assess whether this point of view is actually the case by comparing counties with and without automatic indexation.

At a press conference held at the Economy Ministry on 15 July 2014, Prof Bourgain and Prof Sneesens presented the somewhat surprising results.

“Generally speaking, the results showed more similarities than differences between the countries,”said Bourgain.

To read a full copy of the study’s results please click here.

To view the coverage following the press conference go to: