We examine the extent of downward nominal wage rigidity using the microdata underlying
the BLS s employment cost index. This dataset has two significant advantages over those …

The existence of downward nominal wage rigidity has been abundantly documented, but
what are its economic implications? This paper demonstrates that, even when wages are …

Rigidity in wages has long been thought to impede the functioning of labor markets. In this
paper, we investigate how the degree of downward nominal wage rigidity in US labor markets …

Whether downward nominal wage rigidity causes firms to destroy jobs affects both optimal
monetary policy and the asymmetry of employment fluctuations over the business cycle. This …

Rigidity in wages has long been thought to impede the functioning of labor markets. One recent
strand of the research on wage flexibility in the United States and elsewhere has focused …

We use over a decade of representative payroll data from Great Britain to study the nominal
wage changes of employees who stayed in the same job for at least one year. We show that …

For more than 80 years, many macroeconomic analyses have been premised on the
assumption that workers’ nominal wage rates cannot be cut. Contrary evidence from household …

Focusing on the compression of wage cuts, many empirical studies find a high degree of
downward nominal wage rigidity (DNWR). However, the resulting macroeconomic effects seem …

The existence of downward nominal wage rigidity has been used to argue against the adoption
of zero inflation targets. Investigations of nominal wage flexibility in Australia have been …

Nominal wage rigidity has been shown to exist in periods of high inflation, while reduction in
nominal pay has been hypothesized to occur in times of low inflation. Nominal wage rigidity …