What survey data reveal about price and wage rigidity in Portugal
JOURNAL
YEAR
Sep 21, 2015
TYPE
Articles in journals
AUTHORS
Martins, F.
VOL Nº
29
PAGES
18
ABSTRACT
This paper exploits the information collected from a survey conducted on a sample of Portuguese firms to study the patterns of firms’ price and wage adjustments and the extent of nominal price and wage rigidities. The evidence shows that the frequency of price changes varies substantially across sectors and depends on the intensity of competition, the share of labor costs and firms’ price reviewing behavior. The results also suggest that the constraint imposed by the presence of downward nominal wage rigidity is less important in firms where the fraction of permanent and high-skilled workers is lower and the share of flexible pay components is higher
JEL CLASS
KEYWORDS
wage rigidity,price rigidity,clustering,survey data