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

Jan Babecký, Philip Du Caju, Theodora Kosma, Martina Lawless, Julian Messina and Tairi Room

Scandinavian Journal of Economics, 2010, vol. 112, issue 4, 884-910

Abstract: 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.

Date: 2010
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https://doi.org/10.1111/j.1467-9442.2010.01624.x

Related works:
Working Paper: Downward nominal and real wage rigidity: survey evidence from European firms (2010)
Working Paper: Downward Nominal and Real Wage Rigidity: Survey Evidence from European Firms (2009)
Working Paper: Downward Nominal and Real Wage Rigidity: Survey Evidence from European Firms (2009)
Working Paper: Downward Nominal and Real Wage Rigidity: Survey Evidence from European Firms (2009)
Working Paper: Downward nominal and real wage rigidity:survey evidence from European firms (2009)
Working Paper: Downward nominal and real wage rigidity: Survey evidence from European firms (2009)
Working Paper: Downward nominal and real wage rigidity: survey evidence from European firms (2009)
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