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Survey on wage and price formation of Czech firms
Babecký, Jan ; Dybczak, Kamil ; Galuščák, Kamil
Using an ad-hoc survey at the firm level, writers investigate the determinants of wage and price-setting practices in Czech firms, the presence and sources of wage rigidity, and reactions of firms to hypothetical shocks. Although the evidence of downward wage rigidity is not widespread, they find particular relevance of efficiency wage models for wage rigidity, while implicit contract theory is relevant in firms employing mainly highskilled labour.
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