Asymmetric wage adjustment and employment in European firms

Arbeitspapier

We explore the impact of wage adjustment on employment with a focus on the role of downward nominal wage rigidities. We use a harmonised survey dataset, which covers 25 European countries in the period 2010-2013. These data are particularly useful for this paper given the firm-level information on the change in economic conditions and collective pay agreements. Our findings confirm the presence of wage rigidities in Europe: first, collective pay agreements reduce the probability of downward wage adjustment; second, the rise in the probability of downward base wage responses following a decrease in demand is significantly smaller than the rise in the probability of an upward wage response associated with an increase in demand. Estimation results point to a negative effect of downward wage rigidities on employment at the firm level.

Angaben zum Objekt

• ISBN: 978-92-899-2825-0
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 2103

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Labor Demand ; Wages, Compensation, and Labor Costs: General
• Thema: Wage rigidity ; Employment ; Demand shocks

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Marotzke, Petra ; Anderton, Robert ; Bairrao, Ana ; Berson, Clémence ; Tóth, Peter
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2017

Weitere Informationen

• DOI: doi:10.2866/18548
• Handle: http://hdl.handle.net/10419/175727
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ