Author: Sachiko KurodaPublisher:
ISBN:
Category : Unemployment
Languages : en
Pages : 50
Book Description
The Impact of Downward Nominal Wage Rigidity on the Unemployment Rate
Author: Sachiko KurodaPublisher:
ISBN:
Category : Unemployment
Languages : en
Pages : 50
Book Description
Downward Nominal Wage Rigidity
Author: David E. LebowPublisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 50
Book Description
Downward Nominal Wage Rigidity:
Author: Publisher:
ISBN:
Category :
Languages : en
Pages : 37
Book Description
Labour market observers have long suspected that employers are unwilling to reduce the nominal wages paid to their workers even when they experience severe financial difficulties. This notion of downward nominal wage rigidity (DNWR) has played a prominent role in many models of the labour market and the economy. The first part of this paper reviews the literature on the extent & consequences of DNWR and presents the evidence for DNWR as an important labour market phenomenon. The second part examines the effect of DNWR on wage & employment determination in Canada during periods of low inflation. Data for this examination come from a new wage series based on individual data files from Statistics Canada's Survey of Consumer Finance for 1981 to 1997. This series is used to analyze the relationship between real wage changes and economic conditions. The implication that the real wage should decline less in periods of lower inflation is tested by estimating real wage Phillips curves that link the unemployment rate to the change in real wages. Several empirical strategies are employed to test the hypothesis that the Phillips curve became flatter when inflation dropped below 2% in the 1990s. A second empirical strategy relies on variation both across time & provinces in economic conditions to identify potential changes in the relationship between unemployment rates and changes in real wages. Finally, the paper exploits the richness of the Survey of Consumer Finance data to better understand the cyclical behaviour of real wages in Canada from 1981 to 1997.
The Costs of Price Stability - Downward Nominal Wage Rigidity in Europe
Author: Steinar HoldenPublisher:
ISBN:
Category : Economics
Languages : en
Pages : 60
Book Description
In most European countries, the prevailing terms of employment, including the nominal wage, can only be changed by mutual consent. I show that this feature implies that workers have a strategic advantage in the wage negotiations when they try to prevent a cut in nominal wages. If inflation is so low that some nominal wages have to be cut, the strategic advantage of the workers' induces higher unemployment in equilibrium. The upshot is a long run tradeoff between inflation and unemployment for low levels of inflation. The prediction that low inflation involves higher unemployment in Europe but not in the US, is consistent with previous empirical findings.
Downward Nominal Wage Rigidity in the United States During and After the Great Recession
Author: Bruce C. FallickThe Employment Costs of Downward Nominal-wage Rigidity
Author: Jean FarèsPublisher:
ISBN:
Category : Employment (Economic theory)
Languages : en
Pages : 44
Book Description
Uses firm-level wage and employment data to address whether there is evidence of downward nominal-wage rigidity, and whether that rigidity is associated with a reduction in employment.
The Inflation-Unemployment Trade-off at Low Inflation
Author: Pierpaolo BenignoPublisher: International Monetary Fund
ISBN: 1451871813
Category : Business & Economics
Languages : en
Pages : 48
Book Description
Wage setters take into account the future consequences of their current wage choices in the presence of downward nominal wage rigidities. Several interesting implications arise. First, a closed-form solution for a long-run Phillips curve relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes flatter as inflation declines. Second, macroeconomic volatility shifts the Phillips curve outward, implying that stabilization policies can play an important role in shaping the trade-off. Third, nominal wages tend to be endogenously rigid also upward, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation.
Wage Rigidity in Germany
Author: Heiko StüberPublisher: wbv Media GmbH & Company KG
ISBN: 3763940685
Category : Social Science
Languages : en
Pages : 153
Book Description
Die Interaktion zwischen Inflation und Arbeitslosigkeit beschäftigt Forscher und Politiker bereits eine längere Zeit. Doch existiert tatsächlich ein Zielkonflikt zwischen Inflation und Arbeitslosigkeit? Heiko Stüber geht dieser und anderen Fragen, die sich mit Lohnstarreit beschäftigen, nach. Der erste und gewichtigste Teil des Buches beschäftigt sich mit Abwärtsnominallohnstarrheit. Er bietet einen Überblick über Ursachen, Ausmaß und Implikationen dieser Starrheit, betrachtet ihre makroökonomischen Konsequenzen und untersucht inwiefern die Starrheit Arbeitnehmer unterschiedlich betrifft. Der zweite Teil des Buches beschäftigt sich mit der Reallohnrigidität neu eingestellter Arbeitnehmer über den Konjunkturzyklus. Der Buchteil bietet einen kurzen Überblick bisheriger empirischer Untersuchungen und neuester Entwicklungen und stellt empirische Evidenz zur Zyklizität von Einstiegslöhnen in Deutschland bereit.
The Robustness and Real Consequences of Nominal Wage Rigidity
Author: Ernst FehrPublisher:
ISBN:
Category : Unemployment
Languages : en
Pages : 60
Book Description
Author: Bank of Canada