Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162696
Authors: 
Ronchi, Maddalena
Di Mauro, Filippo
Year of Publication: 
2017
Series/Report no.: 
ECB Working Paper 2051
Abstract: 
The paper aims at investigating to what extent wage negotiation set-ups have shaped up firms' response to the Great Recession, taking a firm-level cross-country perspective. We contribute to the literature by building a new micro-distributed database which merges data related to wage bargaining institutions (Wage Dynamic Network, WDN) with data on firm productivity and other relevant firm characteristics (CompNet). We use the database to study how firms reacted to the Great Recession in terms of variation in profits, wages, and employment. The paper shows that, in line with the theoretical predictions, centralized bargaining systems - as opposed to decentralized/firm level based ones - were accompanied by stronger downward wage rigidity, as well as cuts in employment and profits.
Subjects: 
Productivity
Wage bargaining
Firm level analysis
Global financial crisis
JEL: 
J30
J50
D22
D61
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-2773-4
Document Type: 
Working Paper

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