<p><strong>At 11&ndash;12:30</strong>, an open seminar in the Eesti Pank Museum: <strong>Petra Marotzke </strong>from Deutsche Bundesbank speaks about the study <em>Wage Adjustment and Employment in Europe. </em>The seminar is held in English.</p>

<p>Please register by <strong>5 p.m. on</strong> <strong>27 September </strong>by emailing <a href="mailto:[email protected]">[email protected]</a&gt; or calling668 0758.</p>

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<p><strong>Wage Adjustment and Employment in Europe</strong><br />
P. Marotzke, R. Anderton, A. Bairrao, C. Berson, and P. Tóth)</p>

<p>We explore the impact of wage adjustment on employment with a focus on the role of downward nominal wage rigidities. We use a harmonised survey dataset, which covers 25 European countries in the period 2010-2013. The main advantages of the data are firm-level information on the change in economic conditions and collective pay agreements. Our findings confirm the presence of wage rigidities in Europe: first, collective pay agreements reduce the probability of downward wage adjustment; second, the rise in the probability of downward base wage responses to a decrease in demand is significantly smaller than the rise in the probability of an upward wage response to an increase in demand. Estimation results point to a negative effect of downward wage rigidities on employment at the firm level.</p>