Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Micro Foundations for Wage Flexibility: Wage Insurance at the Firm Level

Ana Rute Cardoso and Miguel Portela
The Scandinavian Journal of Economics
Vol. 111, No. 1 (Mar., 2009), pp. 29-50
Published by: Wiley on behalf of The Scandinavian Journal of Economics
Stable URL: http://www.jstor.org/stable/40254851
Page Count: 22
  • Subscribe ($19.50)
  • Cite this Item
Micro Foundations for Wage Flexibility: Wage Insurance at the Firm Level
Preview not available

Abstract

To what extent do firms insulate their workers' wages from fluctuations in product markets? Which firm and worker attributes are associated with wage flexibility at the micro level? We first rely on Guiso, Pistaferri and Schivardi (2005) to estimate dynamic models of sales and wages, finding that in Portugal, workers' wages respond to permanent shocks on firm performance, as opposed to transitory shocks. We then explore the factors associated with wage flexibility, finding that collective bargaining and minimum wages are associated with higher wage insurance by the firm, while the threat of firm bankruptcy reduces it. Managers receive less protection against permanent shocks than other workers.

Page Thumbnails

  • Thumbnail: Page 
[29]
    [29]
  • Thumbnail: Page 
30
    30
  • Thumbnail: Page 
31
    31
  • Thumbnail: Page 
32
    32
  • Thumbnail: Page 
33
    33
  • Thumbnail: Page 
34
    34
  • Thumbnail: Page 
35
    35
  • Thumbnail: Page 
36
    36
  • Thumbnail: Page 
37
    37
  • Thumbnail: Page 
38
    38
  • Thumbnail: Page 
39
    39
  • Thumbnail: Page 
40
    40
  • Thumbnail: Page 
41
    41
  • Thumbnail: Page 
42
    42
  • Thumbnail: Page 
43
    43
  • Thumbnail: Page 
44
    44
  • Thumbnail: Page 
45
    45
  • Thumbnail: Page 
46
    46
  • Thumbnail: Page 
47
    47
  • Thumbnail: Page 
48
    48
  • Thumbnail: Page 
49
    49
  • Thumbnail: Page 
50
    50