کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
972411 | 932578 | 2012 | 9 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Price, wage and employment response to shocks: evidence from the WDN survey Price, wage and employment response to shocks: evidence from the WDN survey](/preview/png/972411.png)
We analyse the relative intensity and character of price vs. cost and wage vs. employment firm-level adjustment to cost-push shocks in the European System of Central Banks Wage Dynamics Network (WDN) survey data set. The results document several statistically significant and theoretically sensible relationships: price increases are less likely when product market competition is more intense, and more likely when collective wage agreements or employment protection legislation constrain firm-level reactions. We discuss how changes of such structural and institutional features of firms and of their environment may underlie the evolution of macroeconomic adjustment mechanisms in Europe.
► Product market competition matters for price increases and cost reductions after a wage shock.
► Collective wage agreements at industry or national level makes a price increase more likely.
► Firms operating in a highly competitive environment are less likely to reduce non-labour costs.
► Binding labour contracts induce firms to react to cost shocks by reducing employment.
Journal: Labour Economics - Volume 19, Issue 5, October 2012, Pages 783–791