Higher inflation boosts wage adjustments, but at a cost.
The article examines how inflation affects wage adjustments in different job sectors over time. By analyzing data from a salary survey, the researchers found that higher inflation and labor productivity can lead to more frequent wage adjustments in specific job categories. However, excessive inflation can result in inefficient wage changes for employers. This study suggests that moderate inflation levels can act as a lubricant for wage adjustments, but too much inflation can cause problems in the wage-setting process.