Wage Setting in Hungary: Evidence from a Firm Survey
60 Pages Posted: 12 Sep 2011
Date Written: September 1, 2011
This paper presents new evidence on the flexibility of the Hungarian labor market, with special emphasis on wages. The results are based on a new survey on wage setting among Hungarian firms. The survey is part of the Eurosystem Wage Dynamics Network (WDN), and it is a harmonized questionnaire administered in 17 countries in Europe, including almost all Euro Area countries as well as five Central and Eastern European countries. The survey results show that the Hungarian labor market, while institutionally flexible, appears to be surprisingly rigid. The survey evidence points to low turnover and possibly more rigid wages than previously thought.
Keywords: Wage setting, survey, wage dynamics network, Hungary
JEL Classification: C83, J01, J30
Suggested Citation: Suggested Citation