COINTEGRACION DE LOS SALARIOS AGREGADOS EN CHILE: 1980.3 - 1995.3

The paper analyses the behavior of quarterly nominal wages in Chile between 1980.3 and 1995.3. The aim is to estimate a long run wage relationship that allows to identify periods of wage disequilibria. A vector autoregressive model is estimated with Johansens cointegration method. One cointegration vector is identified. On this vector several economic relevant hypotheses, concerning the wage equation, are tested. The results indicate that, in the long run, wages are homogenous of degree one in prices, and that they respond partially to labor productivity growth. Moreover, the appropriateness of introducing the unemployment rate and minimum wages in the long run relation is tested. The results indicate that these variables should not be included in the long run relation.