Babeckij, Jan; Berson, Clémence; Fadejeva, Ludmila; … - In: IZA journal of labor policy 8 (2019) 1, pp. 1-18
This paper provides evidence on the role of non-base wage components as a channel for firms to adjust labour costs in …–2013. We find that firms subject to nominal wage rigidities, which prevent them from adjusting base wages, are more likely to … cut non-base wage components when they are hit by negative shocks. Firms thus use non-base wage components as a strategic …