01893cas a2200253 a 4500 AALejournalIMF007174 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455261383 1018-5941 BD-DhAAL BD-DhAAL Lebrun, Igor. Real Unit Labor Costs Differentials in EMU+L4700 : How Big, How Benign and How Reversible? / Igor Lebrun, Esther Perez Ruiz. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Real unit labor costs (RULC) growth differentials between euro area members have persisted since EMU began and even widened out in the run-up to the crisis. This paper focuses on the causes underlying such dispersion. According to our empirical findings, persistent RULC growth differentials can be attributed to divergent evolutions in capital-output ratios, nominal effective exchange rates and country-specific institutional features, coupled with an increased sensitivity of RULC to fundamentals following the shift in the monetary regime. Because these RULC growth discrepancies in EMU partly result from heterogeneous structural characteristics, policy action seeking more homogenous regulation across the euro area can make a significant contribution to reduce them. Mode of access: Internet Perez Ruiz, Esther. IMF Working Papers; Working Paper ; No. 2011/109 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/109/001.2011.issue-109-en.xml IMF e-Library