Working Paper: Labor cost pass-through to producer prices in Denmark

Working Paper - December 2020 - No. 166

Authors Hviid, Simon Juul; Renkin, Tobias
Subject Inflation, wages and prices; Other economic analyses; Business enterprises and households
Type Working paper
Year 2020
Published 21 December 2020
We estimate the pass-through of a wage shock to producer prices of firms in Denmark. Our results suggest that the pass-through elasticity of wage increases to prices amounts to about one third. Our results are in line with studies of earlier time periods and confirm an important causal relationship between wages and prices.