distribution; and a permanent positive effect on full-time employment. …

We explore the impact of wage adjustment on employment with a focus on the role of downward nominal wage rigidities. We … results point to a negative effect of downward wage rigidities on employment at the firm level. …

We use firm-level survey data from 25 EU countries to analyse how firms adjust their labour costs (employment, wages … likely to reduce employment, then hourly wages and then hours worked, regardless of the source of the shock. Results for the … response to positive shocks in 2010-13, firms were more likely to increase wages, followed by increases in employment and then …