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http://hdl.handle.net/10419/55556
  
Title:How strong is the macroeconomic case for downward real wage rigidity? PDF Logo
Authors:Holden, Steinar
Wulfsberg, Fredrik
Issue Date:2007
Series/Report no.:Working paper series // Federal Reserve Bank of Boston 07-6
Abstract:This paper explores the existence of downward real wage rigidity (DRWR) in 19 OECD countries, over the period 1973-1999, using data for hourly nominal earnings at the industry level. Based on a nonparametric statistical method, which allows for country- and year-specific variation in both the median and the dispersion of industry wage changes, we find evidence of some DRWR in OECD countries overall, as well as for specific geographical regions and time periods. There is some evidence that real wage cuts are less prevalent in countries with strict employment protection legislation and high union density. Generally, we find stronger evidence for downward nominal wage rigidity than for downward real wage rigidity.
JEL:J3
J5
C14
C15
E31
Document Type:Working Paper
Appears in Collections:Working Paper Series, Federal Reserve Bank of Boston

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