Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230336
Authors: 
Funk, Anne Kathrin
Kaufmann, Daniel
Year of Publication: 
2020
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper No. 11-2020
Abstract: 
This paper provides novel evidence on downward nominal wage rigidities and their allocative effects in Switzerland. We match individual wages from a bi-annual firm survey with information on annual income and employment from social security register data. We find relevant downward nominal wage rigidities in the base wage, which accounts for more than 90% of employment income. We then identify the allocative effects of downward nominal wage rigidities on income and employment after an unexpected 1% decline of the consumer price level. Base wage rigidities cause a decline of aggregate income (-0.39%) and employment income (-0.97%), as well as an increase of unemployment (2.11%).
Subjects: 
Downward nominal wage rigidity
income
unemployment
deflation
JEL: 
E30
E40
E50
Document Type: 
Working Paper

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