Does downward nominal wage rigidity dampen wage increases?

Beißinger, Thomas; Stüber, Heiko

Does downward nominal wage rigidity dampen wage increases?

dc.contributor.author	Beißinger, Thomas	de
dc.contributor.author	Stüber, Heiko	de
dc.date.accessioned	2024-04-08T08:44:32Z
dc.date.available	2024-04-08T08:44:32Z
dc.date.created	2010-11-04
dc.date.issued	2010
dc.description.abstract	Focusing on the compression of wage cuts, many empirical studies find a high degree of downward nominal wage rigidity (DNWR). However, the resulting macroeconomic effects seem to be surprisingly weak. This contradiction can be explained within an intertemporal framework in which DNWR not only prevents nominal wage cuts but also induces firms to compress wage increases. We analyze whether a compression of wage increases occurs when DNWR is binding by applying Unconditional Quantile Regression and Seemingly Unrelated Regression to a data set comprising more than 169 million wage changes. We find evidence for a compression of wage increases and only very small effects of DNWR on average real wage growth. The results indicate that DNWR does not provide a strong argument against low inflation targets.	en
dc.identifier.swb	333035232
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5397
dc.identifier.urn	urn:nbn:de:bsz:100-opus-5144
dc.language.iso	eng
dc.relation.ispartofseries	FZID discussion papers; 22
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	Downward nominal wage rigidity	en
dc.subject	Wage stickiness	en
dc.subject	Wage compression	en
dc.subject	Unconditional quantile regression	en
dc.subject.ddc	330
dc.subject.gnd	Nominallohn	de
dc.subject.gnd	Lohnstarrheit	de
dc.title	Does downward nominal wage rigidity dampen wage increases?	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.export.bibtex	@techreport{Beißinger2010, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5397}, author = {Beißinger, Thomas and Stüber, Heiko}, title = {Does downward nominal wage rigidity dampen wage increases?}, year = {2010}, school = {Universität Hohenheim}, series = {FZID discussion papers}, }
local.export.bibtexAuthor	Beißinger, Thomas and Stüber, Heiko
local.export.bibtexKey	Beißinger2010
local.export.bibtexType	@techreport
local.faculty.number	3	de
local.faculty.number	7	de
local.institute.number	520alt	de
local.institute.number	795	de
local.opus.number	514
local.series.issueNumber	22
local.series.title	FZID discussion papers
local.university	Universität Hohenheim	de
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.faculty	Landesanstalten	de
local.university.institute	Institut für Volkswirtschaftslehre (bis 2010)	de
local.university.institute	Forschungszentrum Innovation und Dienstleistung	de

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