Wage-setting Behavior in France: Additional Evidence from an Ad-hoc Survey

• Authors: Montornes Jeremi , Sauner-Leroy Jacques-Bernard
• Languages of publication: EN

Abstracts

EN

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.

Keywords

EN

wage rigidity; wage-setting behavior; survey data

• Publisher: Uniwersytet Warszawski. Wydawnictwo Naukowe Wydziału Zarządzania
• Journal: Journal of Banking and Financial Economics
• Year: 2015
• Issue: 1(3)
• Pages: 5-23

Dates

online

2015-03-26

Contributors

author

Montornes Jeremi

• Banque de France, France

author

Sauner-Leroy Jacques-Bernard

• IEFP, France

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Identifiers

ISSN

2353-6845

DOI

10.7172/2353-6845.jbfe.2015.1.1