Wages determination in EU

This dissertation offers information regarding the wages determination in the EU area, by providing an overview of the main institutional characteristics affecting wage formation in the European Countries. The information presented has been collected mainly from Eurostat data or papers presented in occasion of economic meetings or congresses: I have elaborated all the info and presented this dissertation with the goal to offer a wide overview of an essential subject for all the European workers.
The first section proposes a simple formalization of the factors regarding that determine wages in the euro area and how wage setting mechanism interacts and influences the market conditions (such as productivity, inflation, etc.). I have also introduced empirical findings, despite the heterogeneity of the factors taken into consideration.
The second section (chapters 4 and 5) is dedicated to the economical models (particularly the demand and supply curve and the linkage between unemployment and wage) and how those models can affect (and are affected by) the unification of the European labour market since the introduction of new legislations and euro-oriented economical policies.
The third section gives a bird’s eye perspective regarding important mismatches on our labour market: particularly important are the “Gender Pay Gap, the Generation Pay Gap and the Minimum wages” subjects.
The fourth section gives the results of the previewed factors in case of a deep shock on the economy, how happened for the late 2000s recession: I have tried to understand if the EMU been useful to maintain wages and unemployment rates at a coherent level, as the policies and the theoretical models aimed.
Lastly I give the conclusion of the research.