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 … state dependence can be rationalized in menu cost and Calvo models of wage setting with heterogeneous firms. We examine the …