wage stickiness

wage stickiness

the tendency for WAGES to adjust downwards slowly in response to EXCESS SUPPLY in the LABOUR MARKET. To the extent that labour markets are characterized by wage stickiness, a deficiency of AGGREGATE DEMAND will usually lead to INVOLUNTARY UNEMPLOYMENT. See KEYNESIAN ECONOMICS, ADJUSTMENT SPEED.
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References in periodicals archive ?
The degree of price stickiness implies that firms adjust prices about every three quarters and a half, while the estimate of the Rotemberg parameter for wage stickiness is higher, in line with Zubairy (2014).
LEANING AGAINST WINDY BANK LENDING
Barbiero and others (2017) demonstrate that the extent of appreciation depends on trade openness and the relative magnitude of price and wage stickiness in nonlinear ways.
A Macroeconomic Perspective on Border Taxes
In new work with Martin Beraja and Juan Ospina, I estimate the amount of wage stickiness using cross-state variation.
Regional evidence on business cycle fluctuations and countercyclical policy
Using data on year-to-year nominal wage changes of job stayers, they report observing "both a substantial minority of workers reporting the same nominal wage in adjacent years (suggesting nominal wage stickiness), but also a substantial minority reporting nominal wage cuts (suggesting nominal wage flexibility).
What we know about wage adjustment during the 2007-09 recession and its aftermath
As Selgin argues, if 0% inflation is sufficient to avert unemployment caused by wage stickiness, then 1% deflation will not cause unemployment when it coincides with a 1% increase in productivity.
A comparative institutional analysis of free banking and central bank NGDP targeting
This result, together with the low frequency of wage changes, provides evidence of wage stickiness in the Colombian formal labor market.
Practicas de ajuste salarial y la relacion entre precios y salarios: evidencia a partir de encuestas a empresas colombianas
As discussed in Section 2.2, the transition in the policy simulation from short-run wage stickiness to long-run wage flexibility is governed by equation (E17).
The economic impact of the New Zealand fiscal stimulus package
(1996), 'Nominal wage stickiness and aggregate supply in the Great Depression', Quarterly Journal of Economics, III (3), pp.
Unemployment and real wages in the great depression
Another Possible Source of Wage Stickiness, Journal of Macroeconomics, 1: 79-82.
Breaking vicious circle of low productivity: a new theoretical model
Nevertheless, because of nominal price and wage stickiness, changes in household demand and spending affect the amount firms produce for a given level of prices.
What is the optimal inflation rate?
The second qualification is that the presence of wage stickiness means that price-inflation variability is generally not the only inflation term in the social welfare function; wage-inflation variability appears too (Erceg, Henderson, and Levin, 2000).
Friedman and Taylor on monetary policy rules: a comparison
For instance, implicit wage contracts models a la Azariadis (1975), Baily (1974), and Gordon (1974) (ABG hereafter) have already been shown to be relatively effective in generating wage stickiness (Hart & Holmstrom, 1987).
Self-enforcing labour contracts and macroeconomic dynamics

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