significantly smaller than the rise in the probability of an upward wage response associated with an increase in demand. Estimation …

dismissing employees. However, the force of the shock by which an individual firm is hit (during the 2008/2009 recession) does … not influence the likelihood of dismissals. - Wage Rigidity ; Demand Shock ; Micro Survey Data …

. We discuss estimation of impulse response functions and variance decompositions in such large systems, and present … through error spillover effects. Bootstrapped error bands are also provided for the cross country responses of a shock to the …

. Using matched employer-employee dataset, I adopted the estimation strategy proposed by Guiso et al. (2005) to evaluate wage … response differs depending on the nature of the shock. Broadly speaking, the wage response to permanent shocks is twice as high …

unemployment. The results suggest that the elasticity is indeed negative, i.e. that real wages are lower in local labour markets … with higher unemployment. The size of the elasticity for the euro area is similar to that found in previous studies for a … number of countries, including the United States. Furthermore, there is some variation in the unemployment elasticity by …

cushion. - Survey ; wage rigidity ; cost-push shocks ; demand shock ; wage bargaining institutions ; indexation …

-run Phillips curve between inflation and unemployment and a trade-off between price distortions and output hysteresis that change … hysteresis effects on unemployment and output. Price level targeting or a Taylor-rule responding to the unemployment rate can …