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Table 8 Base wage and non-base wage adjustment depending on shock intensity, SUR estimates

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

 

(1)

(2)

(3)

 

Base wages

Base wages

Base wages

Decrease

Unchanged

Increase

Demand

 No decrease (reference)

-

-

-

 Moderate decrease

0.043***

0.080***

-0.123***

(0.003)

(0.005)

(0.007)

 Strong transitory decrease

0.074***

0.116***

-0.189***

(0.013)

(0.013)

(0.026)

 Strong partly persistent decrease

0.070***

0.112***

-0.182***

(0.007)

(0.008)

(0.015)

 Strong long-lasting decrease

0.080***

0.121***

-0.200***

(0.007)

(0.007)

(0.013)

Finance shock

0.020***

0.033***

-0.053***

(0.003)

(0.005)

(0.008)

Customers’ ability to pay shock

0.007***

0.011***

-0.018***

(0.003)

(0.004)

(0.007)

Availability of supplies shock

0.007**

0.012**

-0.019**

(0.003)

(0.005)

(0.009)

 

Non-base wages

Non-base wages

Non-base wages

Decrease

Unchanged

Increase

Demand

 No decrease (reference)

-

-

-

 Moderate decrease

0.089***

0.053***

-0.142***

(0.005)

(0.003)

(0.007)

 Strong transitory decrease

0.138***

0.056***

-0.194***

(0.022)

(0.003)

(0.021)

 Strong partly persistent decrease

0.159***

0.053***

-0.212***

(0.012)

(0.003)

(0.011)

 Strong long-lasting decrease

0.177***

0.050***

-0.227***

(0.011)

(0.003)

(0.010)

Finance shock

0.037***

0.017***

-0.053***

(0.005)

(0.002)

(0.007)

Customers’ ability to pay shock

0.020***

0.010***

-0.030***

(0.004)

(0.002)

(0.006)

Availability of supplies shock

0.013**

0.007**

-0.020**

(0.006)

(0.003)

(0.008)

p-value

0.000

  

Rho

0.6

  

Observations

19,634

  
  1. As in Table 7