Asymmetric wage adjustment and employment in European firms

Marotzke, Petra; Anderton, Robert; Bairrao, Ana; Berson, Clémence; Tóth, Peter

doi:10.1515/bejm-2018-0254

Cited by 3 publications

(3 citation statements)

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“…Further, a fall in demand significantly increases the probability that wages remain unchanged, while an increase in demand lowers the probability of unchanged wages. This asymmetry is evidence of downward rigidity (see Marotzke et al 2017). The effect of a fall in demand on unchanged wages is larger for base wages than for non-base wage components.…”

Section: Response Of Base Wages and Non-base Wage Components To Changmentioning

confidence: 95%

Non-base wage components as a source of wage adaptability to shocks: evidence from European firms, 2010–2013

et al. 2019

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This paper provides evidence on the role of non-base wage components as a channel for firms to adjust labour costs in the event of adverse shocks. It uses data from a firm-level survey for 25 European countries that covers the period 2010-2013. We find that firms subject to nominal wage rigidities, which prevent them from adjusting base wages, are more likely to cut non-base wage components when they are hit by negative shocks. Firms thus use non-base wage components as a strategic margin to overcome base wage rigidity. We also show that while non-base wage components exhibit some degree of downward rigidity this is smaller than that observed for base wages.

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Section: Response Of Base Wages and Non-base Wage Components To Changmentioning

confidence: 95%

Non-base wage components as a source of wage adaptability to shocks: evidence from European firms, 2010–2013

et al. 2019

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“…Это позволяет им создавать стимулы для привлечения луч ших работников с рынка труда, при этом не конвертируя их в новые обязательства по более высокой фиксированной части зарплаты. Схожий результат для европей ских компаний получен в [Marotzke et al, 2017], где показано, что компании, исполь зующие переменную часть вознагражде ния, более склонны его повышать и менее склонны сокращать сотрудников.…”

Section: заключениеunclassified

Wage Structure and HR Management in Russian Companies

Roshchin¹,

Сидорова²,

Solntsev³

2018

RMJ

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поведение российских компаний на рынке труда характеризуется преобладанием ценовой подстройки к шокам (за счет гибкости заработных плат), а не количественной подстройки (за счет занятости). одним из основных механизмов обеспечения гибкости заработной платы является высокая доля ее переменной части, что позволяет предприятиям с меньшими издержками реагировать на шоки. в статье на основе данных опросов российских предприятий разных секторов экономики за 2009-2017 гг. были оценены детерминанты вариативности поведения предприятий в использовании переменной части зарплаты. полученные результаты показывают, что более высокая доля переменной части зарплаты характерна для предприятий, находящихся в хорошем финансовом положении, осуществляющих крупные инвестиции, платящих более высокие зарплаты и имеющих сравнительно большую численность работников. кроме того, наблюдалось значительное увеличение доли переменной части зарплаты в 2012-2017 гг. Ключевые слова: российский рынок труда, структура заработной платы, переменная часть заработной платы, подстройка рынка труда, кадровая политика.

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“…This would also have implications for econometric methodologies as trend-cycle decomposition would need to feature correlated demand and supply shocks. For an econometric review of the issue with correlated demand and supply shocks, see the work byMorley et al (2003).108 For evidence of wage rigidities in the EU and the euro area, see, for example, Marotzke, P.,Anderton, R., Bairrao, A., Berson, C. and Tóth, P. (2020); Anderton, R., Hantzsche, A., Savsek, S.; Tóth, M. (2017).…”

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confidence: 99%

Employment and the Conduct of Monetary Policy in the Euro Area

et al. 2021

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This report discusses the role of the European Union's full employment objective in the conduct of the ECB's monetary policy. It first reviews a range of indicators of full employment, highlights the heterogeneity of labour market outcomes within different groups in the population and across countries, and documents the flatness of the Phillips curve in the euro area. In this context, it is stressed that labour market structures and trend labour market outcomes are primarily determined by national economic policies. The report then recalls that, in many circumstances, inflation and employment move together and pursuing price stability is conducive to supporting employment. However, in response to economic shocks that give rise to a temporary trade-off between employment and inflation stabilisation, the ECB's medium-term orientation in pursuing price stability is shown to provide flexibility to contribute to the achievement of the EU's full employment objective. Regarding the conduct of monetary policy in a low interest rate environment, model-based simulations suggest that history-dependent policy approaches − which have been proposed to overcome lasting shortfalls of inflation due to the effective lower bound on nominal interest rates by a more persistent policy response to disinflationary shocks − can help to bring employment closer to full employment, even though their effectiveness depends on the strength of the postulated expectations channels. Finally, the importance of employment income and wealth inequality in the transmission of monetary policy strengthens the case for more persistent or forceful easing policies (in pursuit of price stability) when interest rates are constrained by their lower bound.

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Asymmetric wage adjustment and employment in European firms

Cited by 3 publications

References 33 publications

Non-base wage components as a source of wage adaptability to shocks: evidence from European firms, 2010–2013

Non-base wage components as a source of wage adaptability to shocks: evidence from European firms, 2010–2013

Wage Structure and HR Management in Russian Companies

Employment and the Conduct of Monetary Policy in the Euro Area

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