Wage Rigidity: Measurement, Causes and Consequences
Journal
Economic Journal
ISSN
0013-0133
Type
journal article
Date Issued
2007-11-01
Author(s)
Goette, Lorenz
;
Sunde, Uwe
;
Bauer, Thomas
Abstract
Wage rigidity - the observation that wages cannot be adjusted downwards - has important implications for labour markets and macroeconomic performance. Empirical evidence on the extent, causes and consequences of wage rigidity on the individual level is relatively scant, however. This Feature presents articles that apply a new methodology to estimate the incidence and extent of nominal and real wage rigidity among the employed in three major European countries (Germany, Italy and Great Britain). The results document the pervasiveness of nominal and, particularly, real wage rigidity in different institutional and economic environments, and a recent decline in real wage rigidity.
Language
English
Keywords
Wage rigidity
labour markets
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Blackwell
Publisher place
Oxford
Volume
117
Number
524
Start page
499
End page
507
Pages
9
Subject(s)
Division(s)
Eprints ID
43913