We study the response of real wages to the business cycle in eight major Eurozone countries before and during the Great … Recession. Average real wages are found to be acyclical, but this reflects, in large part, the effect of changes in the … SILC panels to control for composition effects, we estimate the elasticities of real wage growth to unemployment increases …

Using employer-employee panel data, we provide novel facts on how real wages and working hours within jobs responded to …. We show that firms were able to respond to the Great Recession with substantial real wage cuts and by recruiting more … part-time workers. A one percentage point increase in the unemployment rate led to an average decline in real hourly wages …