This paper provides an analysis of the labour market adjustment to the 2008-2009 recession in terms of employment, unemployment, hours worked and wages. It highlights differences in the response of employment and unemployment across countries and different socioeconomic groups. For all EU Member...

Both common macroeconomic shocks and country-specific developments have subjected the flexibility of wage setting mechanisms in the euro area to a stress test in recent years. Against this background, this paper takes a fresh look at wage flexibility in EMU and attempts to draw a few lessons...