Gödl, Maximilian; Gödl-Hanisch, Isabel - 2024
The recent surge in inflation led many unions and firms to alter their bargaining and wage-setting policies. Using … novel German firm-level survey data, we document the extent of state dependence in wage setting across firms and workers … duration of wage agreements shortens from 14.2 to 12.9 months, and the adjustment per pay round increases from 2-4% to 4-6%. We …