Testing the Morale Theory of Nominal Wage Rigidity
نویسندگان
چکیده
منابع مشابه
Testing the Morale Theory of Nominal Wage Rigidity
This paper attempts to test the morale theory of nominal wage rigidity by identifying the causal effect of pay cuts on workers’ income satisfaction and work morale. This paper uses the current deflationary recession in Japan to estimate this causal effect. Our original survey of Japanese firms and their employees conducted in 2000 revealed that about 17 percent of our sample experienced a nomin...
متن کاملNominal Wage Rigidity in the United Kingdom
This paper studies the degree of downward rigidity in nominal wages in the United Kingdom using micro-data. Around 9% of employees who remain in the same job from one year to the next have zero pay growth. But on investigating the causes of rigidity we ®nd that up to ninetenths can be attributed to `symmetric' causes (such as contracts and menu costs) or to error. Thus only 1% of workers have p...
متن کاملNominal Wage Rigidity as a Nash Equilibrium
I would like to thank the FCAR and the SSHRC for generous financial support, and André Kurmann, Louis Phaneuf, and seminar participants at the Université du Québec à Montréal for helpful discussions. The usual caveats apply. Abstract : Models of the microfoundations of nominal price rigidities show that in the absence of real rigidities, individual firms have strong incentives to adjust prices ...
متن کاملPay Cuts and Morale: a Test of Downward Nominal Rigidity
This paper tests the ‘morale’ theory of downward nominal wage rigidity. This theory relies on workers disliking nominal pay cuts: cuts should make workers less happy. We investigate this using panel data on individual employees’ pay and satisfaction. We con...rm that nominal cuts do make workers less happy than if their pay had not fallen. But we ...nd no di¤erence in the e¤ect on happiness of ...
متن کاملThe Employment Costs of Downward Nominal-Wage Rigidity
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ژورنال
عنوان ژورنال: ILR Review
سال: 2007
ISSN: 0019-7939,2162-271X
DOI: 10.1177/001979390706100103