Firms have multiple options at the time of adjusting their wage bills. However, previous literature has mainly focused on base wages. We broaden the analysis beyond downward rigidity in base wages by investigating the use of other margins of labour cost adjustment at the firm level. Using data...

It has been well established that the wages of individual workers react little, especially downwards, to shocks that hit their employer. This paper presents new evidence from a unique survey of firms across Europe on the prevalence of downward wage rigidity in both real and nominal terms. We...

We estimate the effect of demand and price uncertainty on firms’ investment decisions from a panel of manufacturing firms. Uncertainty measures are derived from firms’ subjective qualitative expectations. They are close to their theoretical counterparts, the variances of future demand and...

Starting from the assumption that firms are more likely to adjust their prices when doing so is more valuable, this paper analyzes monetary policy shocks in a DSGE model with firm-level heterogeneity. The model is calibrated to retail price microdata, and inflation responses are decomposed into...

Dieses im Rahmen des Programms „Voneinander Lernen“ veranstaltete Seminar fand am 13.-14.Juni in Stockholm statt und befasste sich mit den Auswirkungen von Steuersystemen auf die Gleichstellung von Frau und Mann. Im Mittelpunkt standen das in Schweden bereits 1971 eingeführte...

Improving the quality of women’s work and employment is the focus of this paper. It draws mainly, but not exclusively, on research carried out by the Foundation in this area over the past decade, which has highlighted both positive and negative change as well as persistent challenges faced by...