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Survey evidence on price and wage rigidities in Portugal

Ano de Divulgação 
Código JEL 
D21 - Firm Behavior
E30 - General
J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
This paper exploits the information collected from a survey conducted on a sample of Portuguese firms to study the patterns of firms’ price and wage adjustments and the extent of nominal price and wage rigidities. The evidence shows that the frequency of price changes varies substantially across sectors and depends on a number of factors such as the intensity of competition, the share of labour costs and firms’ price reviewing behaviour. The results also show that wages are more flexible in those firms where the fraction of permanent and high-skilled workers is lower and where the share of flexible pay components is higher.
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