We explore a rigidity-based explanation of the dramatic and off-trend growth in US executive compensation during the 1990s and early 2000s. We show that executive option and stock grants are rigid in the number of shares granted. In addition, salary and bonus exhibit downward nominal rigidity. Rigidity implies that the value of executive pay will grow with firm equity returns, which averaged 30...

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 co...

This paper examines the relationship between downward nominal wage rigidity and employment outcomes using a novel linked employer-employee dataset from Germany. The estimates suggest wage rigidity prevents 24.5 percent of counterfactual wage cuts, with a standard deviation of 23.5 percent across establishments. An establishment with the average level of wage rigidity is predicted to have a 0.7 ...

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This paper revisits an important issue concerning the persistent real effect of a shock to monetary policy. Although recent sentiment has shifted away from price stickiness toward wage stickiness in explaining persistence, the present paper shows that introducing an input–output structure tends to make the former an equally important monetary transmission mechanism. Under staggered wage setting...

This paper uses Tobit models and data for union contracts to examine the extent of downward nominal-wage rigidity in Canada. To be consistent with important stylized facts, the models allow the variance of the notional wage-change distribution to be time-varying and test for menu-cost effects. The empirical results confirm the importance of using a general specification with a timechanging vari...

The names Milton Friedman and John Taylor are associated with different monetary policy rules; but, as shown in this paper, the difference between their perceptions of how the economy works is not great. The monetary policy rules advanced by Taylor and Friedman are compared by linking the rules to the two economists’ underlying views about nominal rigidity, the source of trade-offs, the sources...

carbon nanotubes (cnts) are specific structures with valuable characteristics. in general, the structure of each nanotube is defined by a unique chiral vector. in this paper, different structures of short single-walled cnts are simulated and their mechanical properties are determined using finite element method. for this aim, a simple algorithm is presented which is able to model the geometry o...

Using administrative payroll data from the largest US processing company, we measure extent of nominal wage rigidity in United States. The allow us to define a worker’s per-period base contract separately other forms compensation such as overtime premiums and bonuses. We provide evidence that firms use wages cyclically adjust marginal cost their workers. Nominal declines are much rarer than pre...

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...