Wage Flexibility

Wage Flexibility

The extent to which wages and salaries can rise or fall due to rising or falling profits. That is, a company or economy has wage flexibility if, when times are good, it provides employees raises but has the ability to impose cuts when times are difficult. Proponents of wage flexibility contend that it leads to lower unemployment because employers can cut wages instead of jobs. Critics, however, contend that it leads to lower financial security among workers.
References in periodicals archive ?
The fluctuation in value of gold and silver, it is worth remembering, allowed for greater wage flexibility, and thus less unemployment.
A future without currency wars? It's possible
A further issue related to the monetary union implementation is wage flexibility. Einaudi is conscious of the fact that with the adoption of a single currency, monetary policy could be more advantageous for some countries than for others.
Luigi Einaudi, the European Federation and the ECB's monetary policy as seen by Francesco Forte
In "Wage flexibility and employment fluctuations: evidence from the housing sector," Jorn-Steffen Pischke analyzes the impact of the housing market cycle on wages and employment for three occupations--real estate agents, architects, and construction workers.
Wage and employment fluctuations during the housing market cycle
"Labor mobility and relative wage flexibility in parts of the segmented labour market provide adjustment means from a political economy perspective.
Fiscal reforms key to defending Saudi's peg
Peter Blair Henry and Conrad Miller (2009) note, for example, that in addition to exchange rate policy, the existence of growth-facilitating policies, fiscal discipline, openness to trade, and wage flexibility were important determinants of the superior performance of some of the fixed exchange rate countries in the region.
Monetary Policy, Central Banking and Economic Performance in the Caribbean
In line with Gregg et al., their findings point to greater wage flexibility in the United Kingdom as being one of the key factors in explaining the weakness of productivity since the financial crisis.
Financial crisis and economic performance: introduction
Wage flexibility has played a role, albeit somewhat limited, in facilitating the labour market adjustment since the onset of the crisis, with a substantial proportion of the reduction in the wage bill achieved by cutting employment.
Developments in the Irish labour market during the crisis: what lessons for policy?
This and improved wage flexibility are helping to restore the competitiveness of the Greek economy.
COMMISSION CAUTIOUSLY OPTIMISTIC
Most members of Congep operate in Regions 3, 4A, 4B, and 7, where Congep is discussing possible wage flexibility with the Department of Labor and Employment (DOLE).
Garments sector pushes cut in labor, power costs
To determine more systematically whether the usual intuition that wage rigidities undermine efficiency is correct, or whether our earlier results are more reliable, we analyze more thoroughly the interdependency of wage flexibility and employment duration.
The consequences of (de)regulation on employment duration and efficiency: an experimental study
In particular, there have been no major institutional changes in order to promote numerical or wage flexibility in Germany.
The two German labour market miracles: blueprints for tackling the unemployment crisis?
Nevertheless, he sees indexation as a major source of inflationary difficulties, and endorses attempts by 1980s Boards to introduce a degree of wage flexibility, even while recognising the need for a living minimum.
Bernard Y. Imbun: Dynamics of Wage Fixation in a Developing Economy: the Case of Papua New Guinea
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