The paper uses a new German employer survey on wage setting to analyze incidence and sources of nominal wage rigidity in services vs. manufacturing. Mainly for fear of excess worker turnover, wage cuts are significantly less frequent in services.

We analyse the relative intensity and character of price vs. cost and wage vs. employment firm-level adjustment to cost-push shocks in the European System of Central Banks Wage Dynamics Network (WDN) survey data set. The results document several statistically significant and theoretically...

This paper analyses information from survey data collected in the framework of the Eurosystem’s Wage Dynamics Network (WDN) on patterns of firm-level adjustment to shocks. We document that the relative intensity and the character of price vs. cost and wage vs. employment adjustments in...

Abtract The comment assesses two opposed approaches to design a social labor market for better social inclusion of the unemployed currently under debate in Germany. One approach is the so-called solidary basic income which would offer a choice to take up public employment to all unemployed on...

A major evaluation of family policies in Germany came to the primary conclusions that family leave and early childhood education and care policies are effective. Specific German tax regulations, however, are less effective, as they decrease the incentives, especially for mothers, to return to...