Nominal Wage Flexibility and Institutions: Preliminary Micro-evidence from the Europanel
نویسنده
چکیده
This paper analyses wage dynamics at individual level using the European Community Household Panel data. We compare yearly wage changes of full-time employees staying in the same ...rm for twelve European countries during the 1994-96 time-period. For all the European countries we ...nd evidence of nominal wage rigidity. The percentage of employees receiving no wage changes is di¤erent across countries, with Germany and Ireland ranking at the top and the bottom respectively. At the same time, nominal wage cuts are not rare. We therefore consider the impact of the bargaining structure and institutions in the European labor markets on the extent of nominal wage ‡exibility observed.
منابع مشابه
Wage Flexibility and Employment Fluctuations: Evidence from the Housing Sector
Wage Flexibility and Employment Fluctuations: Evidence from the Housing Sector* Many economists suspect that downward nominal wage rigidities in ongoing labor contracts are an important source of employment fluctuations over the business cycle but there is little direct empirical evidence on this conjecture. This paper compares three occupations in the housing sector with very different wage se...
متن کاملRelationship between nominal wage and price flexibility: Implications for monetary policy∗
The frequencies at which prices and wages are adjusted are key elements in workhorse models used for policy analysis. Yet, there is little evidence regarding the relationship between these two sources of nominal rigidities. Using large price and wage micro-datasets, this paper shows that the frequency of price adjustments is positively related to the frequency of wage changes across industries....
متن کاملDid firms cut nominal wages in a deflationary environment?: Micro-level evidence from the late 19th and early 20th century banking industry
This paper examines wage adjustment in the late 19th and early 20th centuries using personnel records from the Union Bank of Australia and Williams Deacon’s Bank (England). During the period of this study there was steep and prolonged deflation. Firm-specific and industry-specific demand shocks also put downwards pressure on wages. Although it was common for individual wages at the banks to rem...
متن کاملA Study of Downward Nominal Wage Rigidity in Korea
This paper examines downward nominal wage rigidity in Korea using aggregate and individual-level data. We find that the degree of downward nominal wage rigidity differs depending on the data sources used. Results from the aggregate data indicate that, on average, wages have been flexible. By contrast, evidence from the micro data suggests that nominal wages are downwardly rigid most of the time...
متن کاملDownward nominal wage flexibility– real or measurement error?
This paper presents a new method to correct for measurement error in wage data and applies this method to address an old question. How much downward wage flexibility is there in the U.S? We apply standard methods developed by Bai and Perron (1998b) to identify structural breaks in time series data. Applying these methods to wage histories allows us to identify when each person experienced a cha...
متن کامل