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

By Giuseppe Bertola, Aurelijus Dabušinskas, M. Hoeberichts, Mario Izquierdo, Claudia Kwapil, J. Montornès, Daniel Radowski. Social Science Research Network, 2010

221 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/09140fa24d9ffabce7d6f35ec3561bfb429ae4b0

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

Cross-Border Banking in Europe: Implications for Financial Stability and Macroeconomic Policies (2011, result): “This is confirmed by Herrmann and Mihaljek (2010) -30 -20 -10 0 10 20 30 40 50 60”