Resource title

Are real wages rigid downwards?

Resource image

image for OpenScout resource :: Are real wages rigid downwards?

Resource description

This paper explores the existence of downward real wage rigidity (DRWR) in 19 OECD countries, over the period 1973 1999, using data for hourly nominal earnings at industry level. Based on a nonparametric statistical method, which allows for country and year specific variation in both the median and the dispersion of industry wage changes, we find evidence of some downward rigidity of real wages in OECD countries overall, as well as for regions and time periods. There is some evidence that real wage cuts are less prevalent under strict employment protection legislation and high union density. Generally, we find stronger evidence for downward nominal than for downward real wage rigidity.

Resource author

Steinar Holden, Fredrik Wulfsberg

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26028

Resource license

Adapt according to the presented license agreement and reference the original author.