Abstract

http://ssrn.com/abstract=1619192
 
 

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Price, Wage and Employment Response to Shocks: Evidence from the WDN Survey


Aurelijus Dabusinskas


Bank of Estonia

Marco Hoeberichts


De Nederlandsche Bank - Research Department

Mario Izquierdo


Banco de España

Claudia Kwapil


Oesterreichische Nationalbank

Jeremi Montornes


Banque de France

Daniel Radowski


Deutsche Bundesbank

Giuseppe Bertola


Università di Torino - Dipartimento di Economia; Centre for Economic Policy Research (CEPR)

June 2, 2010

Banque de France Working Paper No. 281

Abstract:     
This paper analyses information from survey data collected in the framework of the Eurosystem's Wage Dynamics Network (WDN) on patterns of firm-level adjustment to shocks. We document that the relative intensity and the character of price vs. cost and wage vs. employment adjustments in response to cost-push shocks depend - in theoretically sensible ways - on the intensity of competition in firms' product markets, on the importance of collective wage bargaining and on other structural and institutional features of firms and of their environment. Focusing on the pass-through of cost shocks to prices, our results suggest that the pass-through is lower in highly competitive firms. Furthermore, a high degree of employment protection and collective wage agreements tend to make this pass-through stronger.

Number of Pages in PDF File: 35

Keywords: Wage bargaining, Labour-market institutions, Survey data, European Union

JEL Classification: J31, J38, P50

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Date posted: June 3, 2010  

Suggested Citation

Dabusinskas, Aurelijus and Hoeberichts, Marco and Izquierdo, Mario and Kwapil, Claudia and Montornes, Jeremi and Radowski, Daniel and Bertola, Giuseppe, Price, Wage and Employment Response to Shocks: Evidence from the WDN Survey (June 2, 2010). Banque de France Working Paper No. 281. Available at SSRN: http://ssrn.com/abstract=1619192 or http://dx.doi.org/10.2139/ssrn.1619192

Contact Information

Aurelijus Dabusinskas (Contact Author)
Bank of Estonia ( email )
Estonia Building 13
15095 Tallinn
Estonia
Marco M. Hoeberichts
De Nederlandsche Bank - Research Department ( email )
P.O. Box 98
1000 AB Amsterdam
Netherlands
+31-20-524 2890 (Phone)
+31-20-524 2529 (Fax)

Mario Izquierdo
Banco de España ( email )
Alcala 50
Madrid 28014
Spain
Claudia Kwapil
Oesterreichische Nationalbank ( email )
Otto-Wagner Platz 3
POB 61
Vienna 1011
Austria
Jeremi Montornes
Banque de France ( email )
DGEI 41-1430
75049 Paris Cedex 01
Paris, 75049
France
Daniel Radowski
Deutsche Bundesbank ( email )
Wilhelm-Epstein-Str. 14
D-60431 Frankfurt/Main
Germany
Giuseppe Bertola
Università di Torino - Dipartimento di Economia ( email )
Via Po, 53
Torino, 10124
Italy
+39 011 670 2730 (Phone)
+39 011 670 2762 (Fax)
HOME PAGE: http://www.personalweb.unito.it/Giuseppe.Bertola/
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
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