1 option
Downward Nominal and Real Wage Rigidity : Survey Evidence From European Firms / Babecky, Jan
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Babecky, Jan
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Bargaining power.
- Central banks.
- Collective bargaining.
- Efficiency wage theory.
- Employment.
- Environment.
- Environmental Economics & Policies.
- Income.
- Labor Markets.
- Labor markets.
- Labor Policies.
- Labour.
- Labour markets.
- Macroeconomics and Economic Growth.
- Markets and Market Access.
- Nominal wages.
- Real income.
- Real wages.
- Rents.
- Rigid wages.
- Skilled workers.
- Social Protections and Labor.
- Unemployment.
- Wage flexibility.
- Wage increases.
- Wage rigidities.
- Wage rigidity.
- Wages.
- Local Subjects:
- Bargaining power.
- Central banks.
- Collective bargaining.
- Efficiency wage theory.
- Employment.
- Environment.
- Environmental Economics & Policies.
- Income.
- Labor Markets.
- Labor markets.
- Labor Policies.
- Labour.
- Labour markets.
- Macroeconomics and Economic Growth.
- Markets and Market Access.
- Nominal wages.
- Real income.
- Real wages.
- Rents.
- Rigid wages.
- Skilled workers.
- Social Protections and Labor.
- Unemployment.
- Wage flexibility.
- Wage increases.
- Wage rigidities.
- Wage rigidity.
- Wages.
- Physical Description:
- 1 online resource (52 pages)
- Other Title:
- Downward Nominal And Real Wage Rigidity
- Place of Publication:
- Washington, D.C., The World Bank, 2010
- System Details:
- data file
- Summary:
- It has been well established that the wages of individual workers react little, especially downwards, to shocks that hit their employer. This paper presents new evidence from a unique survey of firms across Europe on the prevalence of downward wage rigidity in both real and nominal terms. The authors analyse which firm-level and institutional factors are associated with wage rigidity. The results indicate that it is related to workforce composition at the establishment level in a manner that is consistent with related theoretical models (e.g. efficiency wage theory, insider-outsider theory). The analysis also finds 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.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.