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What Survey Data Reveal about Price and Wage Rigidity in P ortugal
Author(s) -
Martins Fernando
Publication year - 2015
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/labr.12056
Subject(s) - wage , rigidity (electromagnetism) , economics , exploit , competition (biology) , price setting , labour economics , sample (material) , wage share , survey data collection , efficiency wage , microeconomics , ecology , chemistry , statistics , computer security , mathematics , structural engineering , chromatography , computer science , engineering , biology
This paper exploits the information collected from a survey conducted on a sample of P ortuguese firms to study the patterns of firms’ price and wage adjustments and the extent of nominal price and wage rigidities. The evidence shows that the frequency of price changes varies substantially across sectors and depends on the intensity of competition, the share of labor costs and firms’ price reviewing behavior. The results also suggest that the constraint imposed by the presence of downward nominal wage rigidity is less important in firms where the fraction of permanent and high‐skilled workers is lower and the share of flexible pay components is higher.