Downward Nominal and Real Wage Rigidity : Survey Evidence from European Firms

We present new evidence from a unique survey of firms across Europe on downward wage rigidity in both real and nominal terms. Our results indicate that wage rigidities are related to workforce composition in a manner that is consistent with related theoretical models. We also find that wage rigidity...

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Main Authors:	Babecky, Jan, Du Caju, Philip, Kosma, Theodora, Lawless, Martina, Messina, Julian, Room, Tairi
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Economics of Contract: Theory D860 Employment Unemployment Wages Intergenerational Income Distribution Aggregate Human Capital E240 Wage Level and Structure Wage Differentials J310 Labor Contracts J410 Labor Law K310
Online Access:	http://hdl.handle.net/10986/4853

id	okr-10986-4853
recordtype	oai_dc
spelling	okr-10986-48532021-04-23T14:02:19Z Downward Nominal and Real Wage Rigidity : Survey Evidence from European Firms Babecky, Jan Du Caju, Philip Kosma, Theodora Lawless, Martina Messina, Julian Room, Tairi Economics of Contract: Theory D860 Employment Unemployment Wages Intergenerational Income Distribution Aggregate Human Capital E240 Wage Level and Structure Wage Differentials J310 Labor Contracts J410 Labor Law K310 We present new evidence from a unique survey of firms across Europe on downward wage rigidity in both real and nominal terms. Our results indicate that wage rigidities are related to workforce composition in a manner that is consistent with related theoretical models. We also find that wage rigidity depends on the labour market institutional environment. Collective bargaining coverage is positively related with downward real wage rigidity, measured on the basis of wage indexation. Downward nominal wage rigidity is positively associated with the extent of permanent contracts and this effect is stronger in countries with stricter employment protection regulations. 2012-03-30T07:30:04Z 2012-03-30T07:30:04Z 2010 Journal Article Scandinavian Journal of Economics 03470520 http://hdl.handle.net/10986/4853 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Europe
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Economics of Contract: Theory D860 Employment Unemployment Wages Intergenerational Income Distribution Aggregate Human Capital E240 Wage Level and Structure Wage Differentials J310 Labor Contracts J410 Labor Law K310
spellingShingle	Economics of Contract: Theory D860 Employment Unemployment Wages Intergenerational Income Distribution Aggregate Human Capital E240 Wage Level and Structure Wage Differentials J310 Labor Contracts J410 Labor Law K310 Babecky, Jan Du Caju, Philip Kosma, Theodora Lawless, Martina Messina, Julian Room, Tairi Downward Nominal and Real Wage Rigidity : Survey Evidence from European Firms
geographic_facet	Europe
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	We present new evidence from a unique survey of firms across Europe on downward wage rigidity in both real and nominal terms. Our results indicate that wage rigidities are related to workforce composition in a manner that is consistent with related theoretical models. We also find that wage rigidity depends on the labour market institutional environment. Collective bargaining coverage is positively related with downward real wage rigidity, measured on the basis of wage indexation. Downward nominal wage rigidity is positively associated with the extent of permanent contracts and this effect is stronger in countries with stricter employment protection regulations.
format	Journal Article
author	Babecky, Jan Du Caju, Philip Kosma, Theodora Lawless, Martina Messina, Julian Room, Tairi
author_facet	Babecky, Jan Du Caju, Philip Kosma, Theodora Lawless, Martina Messina, Julian Room, Tairi
author_sort	Babecky, Jan
title	Downward Nominal and Real Wage Rigidity : Survey Evidence from European Firms
title_short	Downward Nominal and Real Wage Rigidity : Survey Evidence from European Firms
title_full	Downward Nominal and Real Wage Rigidity : Survey Evidence from European Firms
title_fullStr	Downward Nominal and Real Wage Rigidity : Survey Evidence from European Firms
title_full_unstemmed	Downward Nominal and Real Wage Rigidity : Survey Evidence from European Firms
title_sort	downward nominal and real wage rigidity : survey evidence from european firms
publishDate	2012
url	http://hdl.handle.net/10986/4853
_version_	1764393000407924736

Downward Nominal and Real Wage Rigidity : Survey Evidence from European Firms

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