Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153598
Authors: 
Bertola, Giuseppe
Dabusinskas, Aurelijus
Hoeberichts, Marco M.
Izquierdo, Mario
Kwapil, Claudia
Montornès, Jérémi
Radowski, Daniel
Year of Publication: 
2010
Series/Report no.: 
ECB Working Paper 1164
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 passthrough 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.
Subjects: 
European Union
Labour-market institutions
survey data
wage bargaining
JEL: 
J31
J38
P50
Document Type: 
Working Paper

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