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 ?

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

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

But complete wage flexibility would be no panacea, either.

Thriving in the automated economy: two management experts show why labor's race against automation will only be won if we partner with our machines. They advise government regulators not to stand in the way of human--machine innovation

The steps include budget cuts, tax reform, central controls on health spending, improved laws on wage flexibility and easier rules for foreign investment.

Greece's broken promises anger EU partners

They also want the Bank of Greece to complete its assessment of Greek banks' capital shortfall and they expect the government to enact legslation to improve wage flexibility and further liberalise product and service markets, the document says.