Wage-setting Behavior in France: Additional Evidence from an Ad-hoc Survey
Journal Title: Journal of Banking and Financial Economics - Year 2015, Vol 1, Issue 3
Abstract
We investigate the wage-setting behavior of French companies using an ad-hoc survey specifically conducted for this study. Our main results are the following. i) Wages are changed infrequently. 75% of firms change their wages once a year. Wage changes occur at regular intervals during the year and are concentrated in January and July. ii) We find a lower degree of downward real wage rigidity and nominal wage rigidity in France compared to the European average. iii) About one third of companies have an internal policy to grant wage increases according to inflation. iv) When companies are faced with adverse shocks, the latter are partially transmitted into prices. Companies also adopt cost-cutting strategies. The wage of newly hired employees plays an important role in this adjustment.
Authors and Affiliations
Jérémi Montornès, Jacques-Bernard Sauner-Leroy
Keywords
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- EP ID EP344415
- DOI 10.7172/2353-6845.jbfe.2015.1.1
- Views 72
- Downloads 0
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