The Incidence of Nominal and Real Wage Rigidity: An Individual-Based Sectoral Approach

Messina, Julián; Duarte, Cláudia; Izquierdo, Mario; Caju, Philip Du; Hansen, Niels Lynggård

doi:10.1162/jeea.2010.8.2-3.487

Cited by 2 publications

(3 citation statements)

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“…Recent labor market reforms have indeed tried to increase the decentralization of the collective bargaining system in Spain, although it is still not possible to assess the impact of these reforms on wage cyclicality. Moreover, traditionally, the Spanish labor market has been characterized by a strong wage indexation to inflation, resulting in a high inertia of wages and real downward wage rigidities (Messina et al 2010). Table 2 depicts the estimates of our two-step equation model, showing real wage semi-elasticity to unemployment variations along the four business cycle phases defined previously 12 .…”

Section: Resultsmentioning

confidence: 99%

Real wage responsiveness to unemployment in Spain: asymmetries along the business cycle

2015

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We estimate real wage cyclicality in the period compressed between 1987 and 2013 using a large administrative dataset of workers in Spain. Real wages are weakly procyclical in Spain and focusing on differences in different phases of the business cycle, we find that differences across expansions and recessions are significant, with an even lower real wage cyclicality in recessions. Furthermore, higher levels of unemployment do not translate into additional real wages adjustments when the economy is contracting, while lower levels of unemployment during expansions have incremental effects on wage elasticity. This general result holds after accounting for differences in tenure, type of contract and age categories. Nevertheless, wages of newly-hired workers are the most sensitive to the business cycle and exhibit the lowest asymmetric pattern between expansions and recessions. At the other end, wages of workers with more than six years of tenure can be characterized as the most protected against economic downturns. The same is true for fixed-term vs. permanent workers, as well as for young vs. older workers.JEL classification: e32, j31

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Section: Resultsmentioning

confidence: 99%

Real wage responsiveness to unemployment in Spain: asymmetries along the business cycle

2015

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“…(2) Wage differentials and inter-industry wage differentials: differences in earnings for workers employed in different industries and occupations has long been recognized as an important issue for the labor market and several studies were carried out [8][9][10]16,32,36,42]. Pointner and Stiglbauer [36] uses several workplace-specific dummies for the employee's occupation (ISCO 1) within the firm, the sector (NACE-2 digits) of the employer, for firm size and location (NUTS-1 digits), and a control for private ownership of the firm for the predictors.…”

Section: Benchmarking Indicators For the Ses Surveymentioning

confidence: 99%

“…Pointner and Stiglbauer [36] uses several workplace-specific dummies for the employee's occupation (ISCO 1) within the firm, the sector (NACE-2 digits) of the employer, for firm size and location (NUTS-1 digits), and a control for private ownership of the firm for the predictors. Usually, the log hourly earnings are modeled by sex, education, age class, number of years of tenure, type of employment contract, part/full-time, bonus for shift, night and/or weekend work, paid overtime and occupation (see, for examples [8,32] ). The Gini index and the quintile share ratio belong to the main indicators to estimate inequality [25,29].…”

Section: Benchmarking Indicators For the Ses Surveymentioning

confidence: 99%

Simulation and quality of a synthetic close-to-reality employer–employee population

Templ¹,

Filzmoser²

2013

Journal of Applied Statistics

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It is of essential importance that researchers have access to linked employer-employee data, but such data sets are rarely available for researchers or the public. Even in case that survey data have been made available, the evaluation of estimation methods is usually done by complex design-based simulation studies. For this aim, data on population level are needed to know the true parameters that are compared with the estimations derived from complex samples. These samples are usually drawn from the population under various sampling designs, missing values and outlier scenarios. The structural earnings statistics sample survey proposes accurate and harmonized data on the level and structure of remuneration of employees, their individual characteristics and the enterprise or place of employment to which they belong in EU member states and candidate countries. At the basis of this data set, we show how to simulate a synthetic close-to-reality population representing the employer and employee structure of Austria. The proposed simulation is based on work of A. Alfons, S. Kraft, M. Templ, and P. Filzmoser [On the simulation of complex universes in the case of applying the German microcensus, DACSEIS research paper series No. 4, University of Tübingen, 2003] and R. Münnich and J. Schürle [Simulation of close-to-reality population data for household surveys with application to EU-SILC, Statistical Methods & Applications 20(3) (2011c), pp. 383-407]. However, new challenges are related to consider the special structure of employeremployee data and the complexity induced with the underlying two-stage design of the survey. By using quality measures in form of simple summary statistics, benchmarking indicators and visualizations, the simulated population is analysed and evaluated. An accompanying study on literature has been made to select the most important benchmarking indicators.

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The Incidence of Nominal and Real Wage Rigidity: An Individual-Based Sectoral Approach

Cited by 2 publications

References 10 publications

Real wage responsiveness to unemployment in Spain: asymmetries along the business cycle

Real wage responsiveness to unemployment in Spain: asymmetries along the business cycle

Simulation and quality of a synthetic close-to-reality employer–employee population

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