Wage Dynamics Network – WDN

The Wage Dynamics Network is a research network consisting of economists from the European Central Bank and the National Central Banks of the EU Member States. The network carries out research on the developments of labour costs and their implications for monetary policy.

The network's main topics of interest are the mechanisms behind firms' labour cost adjustments along the business cycle and following macroeconomic shocks. Further research topics include the implications of wage and price rigidities. The WDN also looks at the impacts of sectoral characteristics, institutional factors, or globalisation on the developments of labour costs.

One of the main outputs of the WDN is an ad hoc firm-level survey of wage and price dynamics in EU Member States. Three rounds of the survey were completed so far. The National Bank of Slovakia participated in data collection in the last two rounds in years 2009 and 2014. More information on the WDN can be found on the ECB's webpage

Research output within the WDN

Research papers from the latest round of the survey (2014):

Papers on Slovakia from the previous round of the survey (2009):

Selected international publications from the previous rounds of the survey:

  •          Babecký, J., P. Du Caju, T. Kosma, M. Lawless, J. Messina, and T. Rõõm (2012): "How do European firms adjust their labour costs when nominal wages are rigid?," Labour Economics, 19, 792-801.
  •          Bertola, G., A. Dabušinskas, M. Hoeberichts, M. Izquierdo, C. Kwapil, J. Montornès, and D. Radowski (2012): "Price, wage and employment response to shocks: evidence from the WDN survey," Labour Economics, 19, 783-791.
  •          Druant, M., S. Fabiani, G. Kézdi, A. Lamo, Martins, and F. R. Sabbatini (2012): "Firms' price and wage adjustment in Europe: Survey evidence on nominal stickiness," Labour Economics, 19, 772-782.
  •          Galuščák, K., M. Keeney, D. Nicolitsas, F. Smets, P. Strzelecki, and M. Vodopivec (2012): "The determination of wages of newly hired employees: Survey evidence on internal versus external factors," Labour Economics, 19, 802-812.

Further publications can be found on the WDN webpage.