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Table 6 Incidence of wage reductions

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

 

Wage adjustment options (%)

  

(1)

(2)

(3)

(4)

  

base = 0

base = 0

base = 1

base = 1

Total

Obs.

Subsample of firms

flex = 0

flex = 1

flex = 1

flex = 0

  

Total

83.6

10.9

3.5

2.0

100

19,855

Decline in demand

73.3

18.0

6.0

2.8

100

8828

Decline in demand or in customers’ ability to pay

77.1

15.1

5.0

2.8

100

11,814

Decline in demand or in customers’ ability to pay and credit restrictions

76.5

15.4

5.4

2.6

100

9494

  1. WDN3, authors’ calculation. The data are weighted to reflect overall employment. Estimation sample of Section 3.2.2