Wage Dynamics Network (WDN)
In February 2006, the Governing Council of the Eurosystem decided to establish a network in which researchers from different central banks were instructed to study wage and labour cost dynamics in the euro area.
The tasks of this network were primarily to:
- examine, on the basis of macroeconomic data, the empirical features of wage and labour cost dynamics for the area as a whole, for each Member State and for the different sectors of the economy, as well as their determining factors and its interaction with the inflation dynamics;
- examine, on the basis of microeconomic data, wage behaviour and possible related rigidities at national and sectoral level, as well as their consequences for wage costs and price formation;
- examine the feasibility and advisability of a survey of individual companies relating to their behaviour in terms of labour costs and price setting.
In view of the excellent information gathered, the Eurosystem invited those who took part in the first survey to participate in the survey once again in 2014.
Information on this new survey, along with an analysis of the results for Belgium, and the findings in the different branches of activity are available on the Wage Dynamics Network (WDN 3) webpage.
Various more specific research projects using the survey data are currently underway in different countries. Their findings will be released in separate publications.
Contributions by the Economics and Research department
The Economics and Research department's contributions to the WDN can be consulted using the following links:
- WP 124: Downward wage rigidity for different workers and firms: an evaluation for Belgium using the IWFP procedure
- WP 127: How do firms adjust their wage bill in Belgium? A decomposition along the intensive and extensive margins
- WP 154: Institutional features of wage bargaining in 23 European countries, the US and Japan
- WP 156: Understanding sectoral differences in downward real wage rigidity: workforce composition, institutions, technology and competition
- WP 159: Rigid labour compensation and flexible employment? Firm-level evidence with regard to productivity for Belgium
- WP 164: Inflation dynamics with labour market matching: assessing alternative specifications
- WP 174: How are firms' wages and prices linked: Survey evidence in Europe
- WP 180: Inter-industry wage differentials: How much does rent sharing matter?
- WP 182: Downward nominal and real wage rigidity: Survey evidence from European firms
- WP 183: The margins of labour cost adjustment: Survey evidence from European firms
- WP 189: Inter-industry wage differentials in EU countries: What do cross-country time-varying data add to the picture?
- WP 191: The incidence of nominal and real wage rigidity: An individual-based sectoral approach
- WP 193: Wages, labor or prices: How do firms react to shocks?
- WP 214: Wage structure effects of international trade: Evidence from a small open economy
- WP 251: Why firms avoid cutting wages : Survey evidence from European firms
- WP 333: The employment consequences of SMEs’ credit constraints in the wake of the great recession