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Do Bonuses Offset the Allocative Effects of Downward Rigid Base Wages?
Auteur(s)
Anne Kathrin Funk
Date de parution
2022
In
AEA Papers and Proceedings
Vol.
112
De la page
486
A la page
490
Résumé
We measure the labor market outcomes of employees with downward rigid base wages after an unexpected deflationary shock in Switzerland using a firm survey matched with Social Security register data. The employees that additionally receive downward flexible compensation, such as bonuses, are less likely to lose their job after a deflationary shock than those only receiving a base wage. Only a modest share of employees receives downward flexible compensation, however. Therefore, these compensation schemes do not offset the overall allocative effects of downward rigid base wages.
Identifiants
Type de publication
journal article
