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The margins of labour cost adjustment: survey evidence from European firms
Babecký, Jan ; Du Caju, Philip ; Kosma, Theodora ; Lawless, Martina ; Messina, Julián ; Rõõm, Tairi
Writers broaden the analysis beyond downward rigidity in base wages by investigating the use of other margins of labour cost adjustment at the firm level. Using data from a unique survey, they find that European firms make frequent use of other, more flexible, components of compensation to adjust the cost of labour.
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