Wage rigidities and business cycle fluctuations: a linked employer-employee analysis

Table 5 Relationship between turnover and wage rigidity controlling for demand shocks

	Turnover₂₀₀₉		Turnover₂₀₁₁		Turnover₂₀₁₃
	(1)	(2)	(3)	(4)	(5)	(6)
Skewness_2003-2008	0.116* (0.0651)	0.107 (0.0651)	0.444** (0.201)	0.425** (0.201)	0.711* (0.364)	0.649* (0.365)
Overtime hours per wrk₂₀₀₈	0.0196 (0.0215)	0.0202 (0.0214)	0.121* (0.0719)	0.119* (0.0707)	0.283*** (0.0860)	0.290*** (0.0830)
Value added per wrk ₂₀₀₈	0.000313 (0.000412)	0.000316 (0.000412)	0.000112 (0.00121)	4.59e−05 (0.00122)	−0.00211* (0.00119)	−0.00241** (0.00117)
Share temporary wrk ₂₀₀₈	1.003*** (0.286)	0.994*** (0.287)	3.057*** (0.883)	3.016*** (0.888)	4.176*** (0.929)	4.098*** (0.916)
% Δ(sales)₂₀₀₉		0.0923*** (0.0348)		0.356*** (0.115)		0.723*** (0.209)
Firms’ size, sector and province dummies, age	Yes	Yes	Yes	Yes	Yes	Yes
Adj. R ²	0.373	0.376	0.425	0.431	0.492	0.503
N	1792	1792	1321	1321	1019	1019

Source: Turnover₂₀₁₁ and Turnover₂₀₁₃ are cumulative for the years 2009–2011 and 2009–2013. All columns include controls for: firms’ value added per worker, firms’ age, size, level of overtime hours per employee, share of temporary workers, province and sector of activity, all referring to 2008. Turnover, overtime hours, share of temporary workers and sales are taken from the INVIND survey. Skewness from INPS data on the population of workers belonging to firms in the INVIND sample. Firm’s size, age, sector and province from INPS data on the population of firms. Value added per worker from CERVED. Robust standard errors in parenthesis
*p < 0.1; **p < 0.05; ***p < 0.01