HOW ARE FIRMS’ WAGES AND PRICES LINKED SURVEY EVIDENCE IN EUROPE

This paper presents new evidence on the patterns of price and wage adjustment inEuropean firms and on the extent of nominal rigidities. It uses a unique dataset collectedthrough a firm-level survey conducted in a broad range of countries and covering varioussectors. Several conclusions are drawn from this evidence. Firms adjust wages lessfrequently than prices: the former tend to remain unchanged for about 15 months onaverage, the latter for around 10 months. The degree of price rigidity varies substantiallyacross sectors and depends strongly on economic features, such as the intensity ofcompetition, the exposure to foreign markets and the share of labour costs in total cost.Instead, country specificities, mostly related to the labour market institutional setting, aremore relevant in characterising the pattern of wage adjustment..

MoreLess

Year of publication:	2009-08-01
Authors:	Druant, Martine ; Fabiani, Silvia ; Kézdi, Gábor ; Lamo, Ana ; Martins, Fernando ; Sabbatici, Roberto
Institutions:	European Central Bank
Published in:	Working papers published in 2009 ECB Working Paper Series No. 1084, August 2009
Subject:	Erhebung \| Lohnstarrheit \| wage rigidity \| Preisstarrheit

freely available

Full text |

More access options

Check Google Scholar

In libraries world-wide (WorldCat)

In German libraries (KVK)

I need help

Abstract
Non-technical summary
Introduction
1 Data and sample
2 Price and wage adjustment: frequency,timing and interaction
2.1 How often are prices and wages adjusted?
2.2 The timing of adjustment
2.3 The interaction between wageand price adjustment
3 A fi rm level analysis of price and wagepolicies in a multivariate framework
3.1 Ordered probit estimation
3.2 Disentangling the simultaneousrelationship of price and wage rigidity
4 Conclusions
Appendices
References
European Central Bank Working Paper Series

Persistent link: https://www.econbiz.de/10005866453