Hungary’s Price and Wage Level in International Comparison: Are They Really Disconnected?

Oblath, Gábor (2015) Hungary’s Price and Wage Level in International Comparison: Are They Really Disconnected? Hungarian Statistical Review, 93 (Specia). pp. 3-21. ISSN 0039-0690

Preview

Text 2015_K19_003.pdf Download (341kB) | Preview

Abstract

It is often claimed that Hungary’s price level has almost reached that of the more developed member countries of the European Union, while wages lag behind both the relative level of prices and the economic performance of the country. The article shows that these notions are based on misperceptions and misinterpretations, related to the selective comparison of prices and to methodological problems in wage-comparisons. If adequately compared, the level of Hungary’s prices turns out to be somewhat lower than justified by per capita real gross domestic product, while the level of Hungary’s labour costs, adjusted for differences in price levels, is in line with the country’s labour productivity. Though the article focuses on Hungary, most of the issues discussed are relevant for the other Central and East-European member countries of the European Union, too.

Actions (login required)

Edit Item