TY  - RPRT
        AU  - Pereira, João
AU  - Ramos, Raul
AU  - Martins, Pedro S.
        TI  - Wage Cyclicality and Labour Market Institutions
        PY  - 2024/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16787
        UR  - https://www.iza.org/index.php/publications/dp16787
        AB  - Do labour institutions influence how wages respond to the business cycle? Such responsiveness can then shape several economic outcomes, including unemployment. In this paper, we examine the role of two key labour market institutions - collective bargaining and temporary contracts - upon wage cyclicality. Our evidence is drawn from rich, 2002-2020 matched data from Portugal. We find that workers not covered by collective agreements exhibit much higher wage cyclicality, especially if new hires, compared to covered workers. In contrast, workers under fixed-term contracts do not exhibit sizable differences in cyclicality compared to counterparts under open-ended contracts. Our findings highlight a novel angle through which labour institutions influence the labour market and the economy.
        KW  - real wages
KW  - business cycles
KW  - collective bargaining
KW  - temporary contracts
KW  - matched data
        ER  -