Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282639 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16512
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Wage rigidity is an important explanation for unemployment fluctuations. In benchmark models wages for new hires are key, but there is limited evidence on this margin. We use wages posted on vacancies, with job and establishment information, to measure the wage for new hires. We show that our measure of the wage for new hires is rigid downward and flexible upward, in two steps. First, wages change infrequently at the job level, and fall especially rarely. Second, wages do not respond to rises in unemployment, but respond strongly to falls in unemployment. Job information is crucial for detecting downward rigidity.
Subjects: 
wage rigidity
online vacancy data
JEL: 
E24
J31
J63
E32
Document Type: 
Working Paper

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