Wage Setting in Hungary: Evidence from a Firm Survey

60 Pages Posted: 12 Sep 2011

See all articles by Gabor Kezdi

Gabor Kezdi

Central European University (CEU) - Department of Economics

István Kónya

Magyar Nemzeti Bank - Economics & Research Department

Date Written: September 1, 2011

Abstract

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

Kezdi, Gabor and Konya, Istvan, Wage Setting in Hungary: Evidence from a Firm Survey (September 1, 2011). ECB Working Paper No. 1378, Available at SSRN: https://ssrn.com/abstract=1920694 or http://dx.doi.org/10.2139/ssrn.1920694

Gabor Kezdi (Contact Author)

Central European University (CEU) - Department of Economics ( email )

Nador u. 9.
Budapest H-1051
Hungary

Istvan Konya

Magyar Nemzeti Bank - Economics & Research Department ( email )

H-1850 Budapest
Hungary

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