Labour Market Adjustment in Europe During the Crisis: Microeconomic Evidence from the Wage Dynamics Network Survey

77 Pages Posted: 5 Jul 2017

See all articles by Mario Izquierdo

Mario Izquierdo

Banco de España

Juan F. Jimeno

Banco de España - Research Department; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Theodora Kosma

Bank of Greece

Ana Lamo

European Central Bank (ECB)

Stephen Millard

Bank of England

Tairi Rõõm

Bank of Estonia

Eliana Viviano

Bank of Italy

Multiple version iconThere are 3 versions of this paper

Date Written: June 23, 2017

Abstract

Against the backdrop of continuing adjustment in EU labour markets in response to the Great Recession and the sovereign debt crisis, the European System of Central Banks (ESCB) conducted the third wave of the Wage Dynamics Network (WDN) survey in 2014-15 as a follow-up to the two previous WDN waves carried out in 2007 and 2009. The WDN survey collected information on wage-setting practices at the firm level. This third wave sampled about 25,000 firms in 25 European countries with the aim of assessing how firms adjusted wages and employment in response to the various shocks and labour market reforms that took place in the European Union (EU) during the period 2010-13. This paper summarises the main results of WDN3 by identifying some patterns in firms’ adjustments and labour market reforms. It seeks to lay out the main lessons learnt from the survey in terms of both the general response of EU labour markets to the crisis and how these responses varied across the countries that took part in the survey.

Keywords: wage dynamics network, survey data, labour market adjustment, labour market reforms

JEL Classification: E24, J30, J52, J68

Suggested Citation

Izquierdo, Mario and Jimeno, Juan F. and Kosma, Theodora and Lamo, Ana and Millard, Stephen and Rõõm, Tairi and Viviano, Eliana, Labour Market Adjustment in Europe During the Crisis: Microeconomic Evidence from the Wage Dynamics Network Survey (June 23, 2017). ECB Occasional Paper No. 192. Available at SSRN: https://ssrn.com/abstract=2996540

Mario Izquierdo (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Juan F. Jimeno

Banco de España - Research Department ( email )

Alcala 48
28014 Madrid
Spain

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Theodora Kosma

Bank of Greece ( email )

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

Ana Lamo

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Stephen Millard

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Tairi Rõõm

Bank of Estonia ( email )

Estonia Building 13
15095 Tallinn
Estonia

Eliana Viviano

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
39
Abstract Views
507
PlumX Metrics