Other publications may include books, quarterly reviews, annual reports and economic bulletins from the ECB, PhD theses and Danmarks Nationalbank’s policies.
Geographical job mobility and wage flexibility
The article analyses two key aspects of labour market flexibility: geographical job mobility and wage flexibility. Although Danish employees show a relatively high willingness to change jobs, the level of geographical job mobility is only moderate by international standards. Employees who are insured against unemployment exhibit a lower degree of geographical job mobility than those with no such insurance. In Denmark, downward wage flexibility is relatively more pronounced than in other countries. This is true of both nominal wages, i.e. wages in monetary terms, and real wages. Wage flexibility is particularly high in export-oriented industries. Normally, there is some degree of stickiness in the downward adjustment of real wages at the beginning of an economic downturn, but downward wage flexibility increases during the downturn.