European firm adjustment during times of economic crisis

Table 11 Main covariates, by cost-cutting strategy (averages)

Covariate	Flexible wages	Permanent employment	Temporary employment	Hours worked	Nonlabour costs	Total
Manufacturing	0.41	0.51	0.52	0.54	0.38	0.46
Services	0.40	0.27	0.30	0.32	0.38	0.33
Trade	0.19	0.22	0.19	0.15	0.25	0.21
Size: 5–19	0.15	0.14	0.07	0.07	0.18	0.13
Size: 20–49	0.24	0.23	0.16	0.27	0.26	0.23
Size: 50–199	0.21	0.21	0.20	0.20	0.19	0.20
Size: > = 200	0.40	0.42	0.56	0.46	0.37	0.44
Austria	0.05	0.03	0.02	0.11	0.03	0.04
Belgium	0.01	0.03	0.03	0.05	0.02	0.03
Czech Republic	0.05	0.08	0.03	0.02	0.06	0.05
Estonia	0.03	0.01	0.00	0.01	0.01	0.01
France	0.17	0.17	0.23	0.15	0.13	0.17
Italy	0.34	0.36	0.32	0.50	0.37	0.37
Netherlands	0.05	0.04	0.15	0.04	0.10	0.09
Poland	0.26	0.16	0.06	0.09	0.23	0.16
Spain	0.05	0.12	0.15	0.04	0.06	0.09
Weak demand shock	0.55	0.45	0.50	0.50	0.72	0.57
Strong demand + weak credit shock	0.36	0.31	0.36	0.36	0.20	0.30
Strong demand + strong credit shock	0.09	0.25	0.13	0.15	0.08	0.13
Share of white-collar workers	0.47	0.39	0.36	0.35	0.45	0.41
Share of high-skilled workers	0.55	0.40	0.39	0.44	0.41	0.42
Share of permanent workers	0.91	0.90	0.89	0.93	0.89	0.90
Flexible pay component	0.10	0.10	0.08	0.07	0.11	0.09
Coverage of collective agreement	0.62	0.73	0.80	0.85	0.67	0.73
Firm-level collective agreement	0.36	0.38	0.45	0.47	0.32	0.39
Time-dependent wage change	0.46	0.47	0.57	0.50	0.47	0.50
Frequent wage adjustment	0.09	0.08	0.13	0.12	0.09	0.10
Labour cost share	0.35	0.33	0.34	0.35	0.32	0.33
Strong competitive pressures	0.65	0.58	0.58	0.49	0.57	0.57