Rigid Wages Trap Workers, Stifle Economic Recovery Across Europe
The study looked at how wages in European firms are resistant to decreasing, even when faced with economic shocks. They found that factors like the type of contracts workers have and the labor market regulations influence how rigid wages are. In countries with more job security laws, wages are less likely to go down. Additionally, firms with more permanent workers tend to have less flexible wages. Overall, the research shows that various factors, like workforce composition and labor market rules, play a role in how wages respond to economic changes in European firms.