Wage and price setting behaviour of Lithuanian firms: survey-based evidence for 2008–2009 and 2010–2013

Jurga Pesliakaite () and Tomas Šiaudvytis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper gives a broad descriptive overview on wage and price setting behaviour of Lithuanian firms during the last episode of the economic crisis in 2008–2009 and in the post¬-crisis period of 2010–2013. The evidence provided in this paper is based on the firm¬¬-level data from the third wave of the Wage Dynamic Network (WDN3) survey ¬— the joint research project of the European Union (EU) countries launched within the European System of Central Banks (ESCB). Wage and price setting strategies of Lithuanian firms were evaluated by relating firms’ decision-making to the macroeconomic, financial and institutional environment under which the firms are operating. The preliminary conclusion drawn in this paper is that both wages and prices show rather high degree of flexibility in Lithuania. Low wage rigidity should primarily be attributable to labour market institutions — low collective wage bargaining coverage and completely decentralised wage setting process. Easing of employment protection laws during the last episode of economic downturn might also have contributed to the increased wage flexibility in the after-crisis period.

Keywords: WDN survey; labour market; wage setting behaviour; price setting behaviour; Lithuania (search for similar items in EconPapers)
JEL-codes: J0 J00 J3 J30 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/67466/1/MPRA_paper_67466.pdf original version (application/pdf)

Related works:
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:pra:mprapa:67466

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().