Wages, compositional effects and the business cycle.

Autor/inn/en	Christodoulopoulou, Styliani; Kouvavas, Omiros
Institution	Europäische Zentralbank
Titel	Wages, compositional effects and the business cycle. Gefälligkeitsübersetzung: Löhne, Kompositionseffekte und der Konjunkturzyklus.
Quelle	Frankfurt, Main (2022), 54 S. PDF als Volltext kostenfreie Datei (1); PDF als Volltext kostenfreie Datei (2) Link als defekt meldenVerfügbarkeit
Reihe	Working paper series / European Central Bank. 2653
Sprache	englisch
Dokumenttyp	online; Monographie
Schlagwörter	Europäisches Haushaltspanel; Beschäftigungsstruktur; Zahlungsverkehr; Auswirkung; Internationaler Vergleich; Qualifikationsstruktur; Lohnentwicklung; Konjunkturaufschwung; Rezession; Lohnhöhe; Beschäftigungseffekt; Einkommenseffekt; Euro (Währung); Konjunkturaufschwung; Lohnentwicklung; Lohnhöhe; Rezession; Zahlungsverkehr; Beschäftigungsstruktur; Niedrig Qualifizierter; Qualifikationsstruktur; Internationaler Vergleich; Auswirkung; Konjunkturabhängigkeit
Abstract	"During the Great Recession, unemployment increased substantially across several euro area countries, with wages exhibiting a muted response. As low skilled workers lose their jobs first during a recession, the remaining employed workers result in a relatively more skilled employment pool. This change in the composition of the employed workers inflates the aggregate wage mechanically, even in the case of no actual pay rises. This paper uses individual level data to control for the effect of changes in the composition of workers on wages and wage cyclicality. We find that compositional effects are highly correlated with the severity of the business cycle, being significant in countries where employment losses were larger. Thus, the results partially explain the muted response of the observed wages to the business cycle, as wages decreased more than what the aggregate numbers suggest during the downturn, a picture that is reversed somewhat during the recent recovery. JEL Classification: J30, E32" (Author's abstract, IAB-Doku).
Erfasst von	Institut für Arbeitsmarkt- und Berufsforschung, Nürnberg
Update	2022/3