Who bear the burden of wage cuts? Evidence from Finland during the 1990s

Petri Böckerman (), Seppo Laaksonen and Jari Vainiomäki
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Jari Vainiomäki: University of Tampere

Labor and Demography from EconWPA

Abstract: This paper explores the incidence of nominal and real wage cuts in the Finnish private sector during the 1990s. Centralized wage freezes together with a positive inflation rate produced real wage cuts for a large proportion of workers during the worst recession years of the early 1990s. In this sense, centralized bargaining shaped the adjustment. The results from micro data reveal that the full-time workers have had a lower likelihood of wage cuts compared with part-time workers. Declines in wages have also been more common in small plants. In addition, there is an important transitory component in wage cuts.

Keywords: micro-level; wages; adjustment (search for similar items in EconPapers)
JEL-codes: J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2005-04-19
Note: Type of Document - pdf; pages: 31
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpla:0504009

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