The Reasons for Wage Rigidity: Evidence from a Survey of Firms*
نویسندگان
چکیده
A survey of 184 firms was conducted to mvestIgate the reasons for wage ngidity The strongest support was found for explanations based on adverse selection in quits and on the effect of wages on effort. In addition, survey respondents mdicated that reducmg turnover IS an Important explanation of wage ngIdIty for wrute-collar workers, and that implicIt contracts are an important explanation for other workers. Respondents also belIeved that effort responds more strongly to wage decreases than to wage mcreases and that wage decreases have a greater Impact on the effort of low-skIlled workers than of hIgh-skIlled workers.
منابع مشابه
Reasons for Wage Rigidity in Germany
Reasons for Wage Rigidity in Germany This study investigates institutional and economic reasons for downward wage rigidity regarding three occupational skill groups. Based on a survey of 801 firms in Germany and an econometric analysis, we find strong support for explanations based on the effects of labour union contracts and efficiency wages that differ between skill groups. Survey respondents...
متن کاملWage rigidity and employment adjustment at the firm level: Evidence from survey data ¬リニ
• We investigate how firms adjust labour costs in the presence of wage rigidities. • Portuguese firms adjust labour costs by adjusting the quantity and cost of labour. • Firms with more flexible base wages are 20 pp. less likely to reduce employment. • By cutting labour costs, firms are 35 pp. less likely to reduce employment. a b s t r a c t a r t i c l e i n f o This paper uses firm level sur...
متن کاملThe Rationale for Wage Rigidity: Survey Evidence from German and US Firms
Discussion Papers are intended to make results of ZEW research promptly available to other economists in order to encourage discussion and suggestions for revisions. The authors are solely responsible for the contents which do not necessarily represent the opinion of the ZEW. This study joins the literature which investigates the empirical relevance of prominent explanations for wage rigidity, ...
متن کاملTesting 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 کاملThreshold Effects in Sticky Information Philips Curve: Evidence from Iran
During the last decade, several studies have argued that sticky information model proposed by Mankiw and Reis (2002), in which firms update their information occasionally rather than instantaneously, explains some stylized facts about the inflation dynamics. Sticky information pricing model successfully captures the sluggish movement of aggregate prices in response to monetary policy shocks. De...
متن کامل