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 …

analyze transitions of workers between unemployment, regular employment and employment accompanied by welfare receipt. Working …. Our findings allow us to draw cautious conclusions on employment subsidies paid as welfare benefits. …