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Title:Downward nominal wage rigidity in services: direct evidence from a firm survey PDF Logo
Authors:Radowski, Daniel
Bonin, Holger
Issue Date:2009
Series/Report no.:IZA discussion papers 3923
Abstract:The paper uses a new German employer survey on wage setting practices to analyze incidence and sources of nominal wage rigidity in services vs. manufacturing. We observe that wage freezes are significantly more frequent and wage cuts less frequent in services. Reasons preventing wage cuts reported by employers suggest that fear of excess worker turnover could explain this distinct behavior.
Subjects:Nominal wage rigidity
efficiency wages
manufacturing and services
Germany
JEL:J31
Persistent Identifier of the first edition:urn:nbn:de:101:1-20090119193
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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