Table 8 Firms’ cost-cutting strategies in response to economic shocks (percentage of firms choosing a given strategy as the “most important factor” in cost reduction)
From: European firm adjustment during times of economic crisis
Base wages | Flexible wages | Permanent employment | Temporary employment | Hours worked | Nonlabour costs | |
|---|---|---|---|---|---|---|
By country | ||||||
Austria | 0.3 | 12.2 | 12.2 | 11.1 | 36.2 | 28.0 |
Belgium | 0.9 | 3.1 | 16.8 | 29.6 | 24.9 | 24.6 |
Czech Republic | 0.0 | 10.4 | 27.9 | 16.4 | 5.3 | 40.1 |
Estonia | 14.3 | 25.1 | 24.2 | 3.7 | 9.3 | 23.5 |
France | 0.1 | 9.9 | 17.1 | 33.9 | 12.4 | 26.2 |
Italy | 1.3 | 8.9 | 16.6 | 21.1 | 18.4 | 33.7 |
Netherlands | 1.4 | 5.0 | 8.1 | 40.5 | 6.2 | 38.8 |
Poland | 1.9 | 15.9 | 16.7 | 9.1 | 7.6 | 48.7 |
Spain | 1.0 | 5.5 | 23.2 | 41.6 | 5.9 | 22.8 |
Total | 1.2 | 9.8 | 16.9 | 24.3 | 13.6 | 33.9 |
By type of shock | ||||||
Demand (weak) | 0.8 | 9.5 | 13.2 | 21.6 | 11.6 | 42.5 |
Demand (strong) + credit (weak) | 1.6 | 11.9 | 17.5 | 29.8 | 16.1 | 22.6 |
Demand + credit (both strong) | 2.4 | 7.0 | 31.2 | 24.0 | 14.6 | 20.8 |