Does wage inflation cause price inflation?

RePEc Short ID: psc593
ORCID iD: 0000-0003-4625-7138

Hess, Gregory D.; Schweitzer, Mark E.

Discussion Paper

Does wage inflation cause price inflation?

Abstract: Is there any evidence to support the assumption that increased wages cause inflation? This study updates and expands earlier research into this question and finds little support for the view that higher wages cause higher prices. On the contrary, more evidence is found for higher prices leading to wage growth.

Keywords: Prices; Inflation (Finance); Wages;