Skip to main content

Table 5 Relationship between cuts in non-base wage components and base wage rigidity

From: Non-base wage components as a source of wage adaptability to shocks: evidence from European firms, 2010–2013

 

(1)

(2)

(3)

Base wage rigidity

DNWR base wage freezes

0.117***

0.086***

0.084***

(0.010)

(0.008)

(0.016)

Shocks

 Demand shock

 

0.109***

0.114***

(0.013)

(0.015)

 Finance shock

0.058***

0.062***

(0.007)

(0.008)

 Customers’ ability to pay shock

0.032***

0.019**

(0.008)

(0.009)

 Availability of supplies shock

0.028***

0.033***

(0.006)

(0.008)

DNWR * shocks

 Base wage freezes and demand shock

  

− 0.019

(0.021)

 Base wage freezes and customer pay shock

0.038***

(0.012)

 Base wage freezes and credit shock

− 0.014

(0.013)

 Base wage freezes and availability of supplies shock

− 0.015*

(0.009)

Observations

19,234

18,582

18,582

  1. Marginal effects reported. Probit estimation. The dependent variable is equal to one if the firm reduces non-base wage components. Standard errors in parentheses. The estimation is controlled for sectors, firm size, labour cost share, share of manual workers, workers’ tenure, multi-establishments and country fixed effects. See Additional file 1: Table S3 for the full set of results
  2. ***p < 0.01, **p < 0.05, *p < 0.1