Analyzing the Relationship Between Wage Rigidity and Employment Fluctuations in Spain's Recessions
Thursday, 11 July 2024, 23:05
Impact of Downward Nominal Wage Rigidity on Employment Dynamics
Wage rigidity, such as collective contracts, influences employment fluctuations.
Key Findings:
- Higher Wage Growth Pre-Recession: Contracts renegotiated just before the 2009 recession resulted in increased wage growth initially.
- Wage Inflexibility and Non-Employment: Lengthy collective contracts in 2009 exacerbated non-employment among workers near minimum wage thresholds.
Understanding these dynamics is crucial for assessing labor market response to economic shocks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.