EconStor >
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Essen >
RWI Discussion Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/18563
  
Title:Real and Nominal Wage Rigidities and the Rate of Inflation : Evidence from West German Micro Data PDF Logo
Authors:Bauer, Thomas K.
Bonin, Holger
Sunde, Uwe
Issue Date:2004
Series/Report no.:RWI Discussion Papers 12
Abstract:The paper examines real and nominal wage rigidities.We estimate a switching regime model, in which the observed distribution of individual wage changes, computed from West German register data for 1976-1997, is generated by simultaneous processes of real, nominal or no wage rigidity, and measurement error. The fraction of workers facing wage increases that are due to nominal, but mostly real wage rigidity is substantial.The extent of real rigidity rises with inflation, whereas the opposite holds for nominal rigidity. Overall, the incidence of wage rigidity, which accelerates unemployment growth, is most likely minimized in an environment with moderate inflation.
Subjects:downward wage rigidity
real effects of inflation
collective bargaining
switching regime model
West Germany
JEL:J51
J31
E52
Document Type:Working Paper
Appears in Collections:RWI Discussion Papers
Publikationen von Forscherinnen und Forschern des RWI

Files in This Item:
File Description SizeFormat
DP_04_012.pdf423.07 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/18563

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.