Staggered contracts and unemployment during recessions
Effrosyni Adamopoulou,
Luis Díez-Catalán,
Ernesto Villanueva
Abstract:This paper studies the impact of downward wage rigidity on wage and employment dynamics after the outbreak of major recessions in Spain. Downward wage rigidity stems from collective agreements, which set province-sector-skill-specific minimum wage floors for all workers. By exploiting variation in the renewal of collective agreements, we find that those signed before the onset of recessions settle on higher nominal negotiated wage growth than agreements signed afterwards. Leveraging social security data and th… Show more
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