@TechReport{iza:izadps:dp17269,
            	author={Buchheim, Lukas and Link, Sebastian and Möhrle, Sascha},
            	title={Inflation and Wage Expectations of Firms and Employees},
            	year={2024},
	month={Sep},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17269},
            	url={https://www.iza.org/publications/dp17269},
	abstract={We study the link between expected inflation and wages using novel panel data from German firms and employees. We find that pass-through—the percentage point change in wage growth given a one percentage point change in expected inflation—is small: 0.11–0.17 for firms and 0.03–0.07 for employees. Utilizing variation in the coverage length of collective agreements, we estimate that passthrough at the intensive margin is 1.4-2 times larger than average pass-through, highlighting the importance of wage rigidities for pass-through. Pass-through also rises with the bargaining power of employees. At the extensive margin, expected inflation has little effect on additional wage negotiations.},
	keywords={wage expectations;inflation;pass-through;wage-price spirals;bargaining;firms;employees;survey data},
            }