Price, Wage and Employment Response to Shocks: Evidence from the WDN Survey

Giuseppe Bertola, A. Dabusinskas, Marco Hoeberichts (), Mario Izquierdo (), C. Kwapil, J. Montorn s and D. Radowski
Authors registered in the RePEc Author Service: Jérémi Montornes

Working papers from Banque de France

Abstract: This paper analyses information from survey data collected in the framework of the Eurosystem's Wage Dynamics Network (WDN) on patterns of firm-level adjustment to shocks. We document that the relative intensity and the character of price vs. cost and wage vs. employment adjustments in response to cost-push shocks depend - in theoretically sensible ways - on the intensity of competition in firms' product markets, on the importance of collective wage bargaining and on other structural and institutional features of firms and of their environment. Focusing on the pass-through of cost shocks to prices, our results suggest that the pass-through is lower in highly competitive firms. Furthermore, a high degree of employment protection and collective wage agreements tend to make this pass-through stronger.

Keywords: Wage bargaining; Labour-market institutions; Survey data; European Union. (search for similar items in EconPapers)
JEL-codes: J31 J38 P50 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2010
New Economics Papers: this item is included in nep-cba, nep-eec and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (50)

Downloads: (external link)
https://publications.banque-france.fr/sites/defaul ... g-paper_281_2010.pdf (application/pdf)

Related works:
Journal Article: Price, wage and employment response to shocks: evidence from the WDN survey (2012)
Working Paper: Price, wage and employment response to shocks: evidence from the WDN Survey (2010)
Working Paper: Price, Wage and Employment Response to Shocks: Evidence from the WDN Survey (2010)
Working Paper: Price, wage and employment response to shocks: evidence from the WDN survey (2010)
Working Paper: Price, wage and employment response to shocks: evidence from the WDN survey (2010)
Working Paper: Price, wage and employment response to shocks: evidence from the WDN survey (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:281

Access Statistics for this paper

More papers in Working papers from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().