Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Schwartzman, Felipe / Wang, Pengfei

IMPACT FACTOR 2017: 0.378
5-year IMPACT FACTOR: 0.462

CiteScore 2017: 0.62

SCImago Journal Rank (SJR) 2017: 0.553
Source Normalized Impact per Paper (SNIP) 2017: 0.605

See all formats and pricing
More options …

Downward Nominal Wage Rigidity in the OECD

Steinar Holden / Fredrik Wulfsberg
Published Online: 2008-04-11 | DOI: https://doi.org/10.2202/1935-1690.1651

Recent microeconomic studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries, but critics argue that the effect might be undone by compositional changes and flexibility in wages of new entrants. Using data for hourly nominal wages at industry level, we explore the existence of DNWR on industry wages in 19 OECD countries, over the period 1973-1999. We propose a novel method to detect DNWR. We reject the hypothesis of no DNWR in the overall sample. The fraction of wage cuts prevented due to DNWR has fallen over time, from 61 percent in the 1970s to 16 percent in the late 1990s, but the number of industries affected by DNWR has increased. DNWR is more prevalent when unemployment is low and union density is high. Strict employment protection legislation also leads to fewer wage cuts.

Keywords: downward nominal wage rigidity; OECD; employment protection legislation; wage setting

About the article

Published Online: 2008-04-11

Citation Information: The B.E. Journal of Macroeconomics, Volume 8, Issue 1, ISSN (Online) 1935-1690, DOI: https://doi.org/10.2202/1935-1690.1651.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

Patrick J. Coe
Canadian Journal of Economics/Revue canadienne d'économique, 2018, Volume 51, Number 3, Page 946
Dany Brouillette, Olena Kostyshyna, and Natalia Kyui
Canadian Journal of Economics/Revue canadienne d'économique, 2018, Volume 51, Number 3, Page 968
Stephanie Schmitt-Grohé and Martín Uribe
Journal of Political Economy, 2016, Volume 124, Number 5, Page 1466
Robert Anderton, Arno Hantzsche, Simon Savsek, and Máté Tóth
Open Economies Review, 2017
Stephanie Schmitt-Grohé and Martín Uribe
American Economic Journal: Macroeconomics, 2017, Volume 9, Number 1, Page 165
Antonia López-Villavicencio and Sophie Saglio
Oxford Bulletin of Economics and Statistics, 2017, Volume 79, Number 1, Page 55
Jósef Sigurdsson and Rannveig Sigurdardottir
Journal of Monetary Economics, 2016, Volume 78, Page 50
Daniel A. Dias, Carlos R. Marques, and Fernando Martins
Empirical Economics, 2015, Volume 49, Number 3, Page 1143
Aedín Doris, Donal O’Neill, and Olive Sweetman
IZA Journal of European Labor Studies, 2015, Volume 4, Number 1
Gyun Cheol Gu
Metroeconomica, 2015, Volume 66, Number 4, Page 661
Fernando Martins
LABOUR, 2015, Volume 29, Number 3, Page 291
P. Du Caju, C. Fuss, and L. Wintr
Journal for Labour Market Research, 2012, Volume 45, Number 1, Page 7
Journal of Money, Credit and Banking, 2014, Volume 46, Number S2, Page 51
Luca Antonio Ricci and Pierpaolo Benigno
IMF Working Papers, 2009, Volume 09, Number 34, Page 1
Daniel A. Dias, Carlos Robalo Marques, and Fernando Martins
Labour Economics, 2013, Volume 23, Page 40
Cristian Bartolucci
Labour Economics, 2012, Volume 19, Number 4, Page 568
Julian Messina, Chiara Strozzi, and Jarkko Turunen
Journal of Economic Dynamics and Control, 2009, Volume 33, Number 6, Page 1183
Julián Messina, Cláudia Filipa Duarte, Mario Izquierdo, Philip Caju, and Niels Lynggård Hansen
Journal of the European Economic Association, 2010, Volume 8, Number 2-3, Page 487

Comments (0)

Please log in or register to comment.
Log in