Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/51273 
Year of Publication: 
2009
Series/Report no.: 
CAWM Discussion Paper No. 13
Publisher: 
Westfälische Wilhelms-Universität Münster, Centrum für Angewandte Wirtschaftsforschung (CAWM), Münster
Abstract: 
Downward nominal wage rigidity (DNWR) could prevent real wage adjustments in times of low inflation rates. Nominal wage rigidity based on annual wages can at least be reduced, if the number of working hours is considered. This leads to a lower degree of DNWR in hourly wage changes. In this paper, we use a histogram-location approach to investigate to what extent annual as well as hourly wages are subject to downward nominal wage rigidity. Using data from the Panel Study of Income Dynamics (PSID) we find that annual wage changes exhibit a substantially higher level of wage rigidity than hourly wage changes which also holds for males compared to females.
Subjects: 
Wage Rigidity
Histogram-Location Approach
JEL: 
E24
J30
J31
Document Type: 
Working Paper

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