Sentence examples for rigid wages from inspiring English sources

The fact that countries with rigid wages tend to experience employment losses due to immigration is moreover supported by Glitz (2012) for Germany and Angrist and Kugler (2003) for a panel of 18 European countries.

The role played by labor market institutions in shaping the labor market effects of immigration should be particularly important in continental European countries since they tend to have rigid wages (Nickell 1997; Babecký et al. 2010, 2012; Messina et al. 2010).

With rigid wages and at least some degree of substitutability between natives and immigrants in the production process, an increase in labor supply through immigration should not affect wages.9 Instead, immigration should decrease the employment of similarly skilled native workers (at least in the short run), as shown in Grossman (1982) and Angrist and Kugler (2003).

However, others, including Angrist and Kugler (2002), contend that the inflexible labor market institutions in Europe, encompassing firing costs, restrictive collective bargaining agreements, rigid wages, and high business entry costs, will most likely exacerbate the pain caused by immigration to natives in the long-run.

In this paper, we adopt a flexible approach for the estimates of wage rigidities: the only assumption we make is that the distribution of the notional wage changes is symmetric around the median.7 This implies that the only thing that distinguishes a scenario of rigid wages from a scenario of fully flexible wages is the presence of asymmetries in the distribution of wage changes.

The impact on Spain's productivity is compounded by rigid wage rules.

They also argued that Etihad and its peers, backed by deep-pocketed governments and not burdened with outdated terminals, airport taxes and rigid wage schemes, enjoyed an unfair advantage that European airlines could never match.

However, another indicator of a rigid wage structure a time-dependent wage-setting scheme does not seem to significantly alter the probability of using this adjustment strategy.

This paper investigates the impact of immigration on the wages and employment of similarly skilled native workers in France, a country which is characterized by a rigid wage structure.

Given that firms characterized by a rigid wage structure may choose to hire more temporary workers as a response to the crisis, we evaluate the heterogeneity of the effect based on the firms' stock of temporary workers before the crisis in order to classify them.

Moving on to labour market policy and unemployment in the Union, the Netherlands is right to stress the need for structural changes in policy regarding rigid wage systems, changes in social benefits and greater labour mobility.