Lohnstarrheit / Wage Rigidity
In Krisenzeiten greifen Arbeitgeberinnen und Arbeitgeber eher auf Entlassungen als auf das Mittel der Nominallohnsenkung zurück. Dies kann am Einfluss der Gewerkschaften, an unflexiblen Lohnsystemen der Firmen oder auch an Fairnessnormen liegen. Welche Auswirkungen haben nach unten starre Löhne auf dem Arbeitsmarkt? Führen sie in Verbindung mit einer niedrigen Inflationsrate zu höherer Arbeitslosigkeit? Diese IAB-Infoplattform präsentiert wissenschaftliche Literatur zum Thema Abwärtslohnrigidität.
In times of crisis, employers tend to resort to dismissals instead of the medium of reduction in nominal wages. This may be due to the influence of the trade unions, the inflexibility of company wage systems, or possibly also norms of fairness. What effect do downwardly rigid wages have on the labour market? Do they lead - in conjunction with a lower inflation rate - to higher unemployment? This IAB info platform presents scientific literature on the topic of downward wage rigidity.
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Literaturhinweis
Informal Incentives and Labour Markets (2025)
Fahn, Matthias; Murooka, Takeshi;Zitatform
Fahn, Matthias & Takeshi Murooka (2025): Informal Incentives and Labour Markets. In: The Economic Journal, Jg. 135, H. 665, S. 144-179. DOI:10.1093/ej/ueae063
Abstract
"This paper investigates how labor-market tightness affects market outcomes if firms use informal, self-enforcing, agreements to motivate workers. We characterize profit-maximising equilibria and show that an increase in the supply of homogeneous workers can increase wages. Moreover, even though all workers are identical in terms of skills or productivity, profit-maximising discrimination equilibria exist. There, a group of majority workers is paid higher wages than a group of minority workers, who may even be completely excluded. Minimum wages can reduce such discrimination and increase employment. We discuss how these results relate to empirical evidence on downward wage rigidity, immigration, the gender pay gap, and credentialism." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Do sticky prices or sticky wages matter for monetary non-neutrality? (2025)
Ho, Cheuk Yin;Zitatform
Ho, Cheuk Yin (2025): Do sticky prices or sticky wages matter for monetary non-neutrality? In: Economics Letters, Jg. 251. DOI:10.1016/j.econlet.2025.112310
Abstract
"The textbook New Keynesian model shows that monetary non-neutrality exists in the presence of price rigidity or wage rigidity. This paper empirically examines the relative importance of these sources of nominal stickiness in transmitting monetary shocks on output. Difference-in-differences estimates show that relative to the sector without nominal stickiness, the output of the sector with sticky prices declines by about 2 percent at the trough after a one-standard-deviation increase in the contractionary monetary shock. The effects are smaller and statistically insignificant for the sector with sticky wages. The findings are robust to controlling for the kurtosis of price changes. Implications for theoretical modeling are discussed." (Author's abstract, IAB-Doku, © 2025 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.) ((en))
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Literaturhinweis
Downward wage rigidity and asymmetric effects of monetary policy (2025)
Zitatform
Jackson, Laura E. & Ezgi Kurt (2025): Downward wage rigidity and asymmetric effects of monetary policy. In: Journal of macroeconomics, Jg. 83. DOI:10.1016/j.jmacro.2024.103645
Abstract
"This paper provides industry-level evidence on the presence of downward real wage rigidity and asymmetric effects of monetary policy in the US labor market. Focusing on industry-level data from 1975q1 to 2020q4, we find strong heterogeneity in the trade-off between wage rigidity and employment. Specifically, we show that service-sector industries show downward-flexible wages and muted employment losses in response to monetary contractions. On the other hand, we find that a trade-off between wage rigidity and employment exists only weakly in the manufacturing sector. We examine this in the context of unionization and trade integration policies of recent decades and show that factors such as low unionization or high exposure to import competition weakens the wage-employment link. Among these, high exposure to trade seems to be the more important channel for manufacturing industries." (Author's abstract, IAB-Doku, © 2024 Elsevier Inc. All rights are reserved, including those for text and data mining, AI training, and similar technologies.) ((en))
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Literaturhinweis
Labor Market Concentration, Wages and Job Security in Europe (2024)
Bassanini, Andrea ; Popp, Martin ; Falco, Paolo ; Oberfichtner, Michael ; Felgueroso, Florentino; Caroli, Eve ; Jansen, Marcel; Cingano, Frederico; Bovini, Giulia; Casanova Ferrando, Jorge; Melo, António ; Martins, Pedro S. ;Zitatform
Bassanini, Andrea, Giulia Bovini, Eve Caroli, Jorge Casanova Ferrando, Frederico Cingano, Paolo Falco, Florentino Felgueroso, Marcel Jansen, Pedro S. Martins, António Melo, Michael Oberfichtner & Martin Popp (2024): Labor Market Concentration, Wages and Job Security in Europe. In: The Journal of Human Resources, S. 1-54. DOI:10.3368/jhr.0223-12757R1
Abstract
"We leverage administrative linked employer-employee data from six European countries to provide the first comparable cross-country evidence on the impact of labor market concentration on wages and job security. We find strikingly similar and relatively low wage elasticities across countries, but greater elasticities for job security, as measured by contract type. We provide suggestive evidence that the similarity of our wage elasticities and the greater sensitivity of job security to labor market concentration may be explained by the fact that sector-level collective bargaining is dominant in the countries we study and that it sets wages but usually not contract type." (Author's abstract, IAB-Doku, © University of Wisconsin Press) ((en))
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Literaturhinweis
Wage reactions to regional and national unemployment (2024)
Zitatform
Blien, Uwe, Jan Mutl, Van Phan thi Hong & Katja Wolf (2024): Wage reactions to regional and national unemployment. In: Regional Science Policy & Practice, Jg. 16, H. 1, 2023-05-02. DOI:10.1111/rsp3.12675
Abstract
"This paper analyses the entire wage effects of unemployment for an especially long observation period. In a three-step approach, the wage reaction at national level (wage setting curve or aggregate wage equation) is added to the reaction at regional level (wage curve). Spatial models with instrumental variables are used." (Author's abstract, IAB-Doku, © Wiley) ((en))
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Literaturhinweis
Wage Rigidity and Employment Outcomes: Evidence from Administrative Data (2024)
Zitatform
Ehrlich, Gabriel & Joshua Montes (2024): Wage Rigidity and Employment Outcomes: Evidence from Administrative Data. In: American Economic Journal. Macroeconomics, Jg. 16, H. 1, S. 147-206. DOI:10.1257/mac.20200125
Abstract
"This paper examines the relationship between downward nominal wage rigidity and employment outcomes using linked employer-employee data. Wage rigidity prevents 27.1 percent of counterfactual wage cuts, with a standard deviation of 19.2 percent across establishments. An establishment with the sample-average level of wage rigidity is predicted to have a 3.3 percentage point higher layoff rate, a 7.4 percentage point lower quit rate, and a 2.0 percentage point lower hire rate. Estimating a structural model by indirect inference implies that the cost of a nominal wage cut is 33 percent of an average worker’s annual compensation. (JEL E24, J23, J31, J63, M51)" (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
On household labour supply in sticky-wage HANK models (2024)
Gerke, Rafael; Giesen, Sebastian; Röttger, Joost; Lozej, Matija;Zitatform
Gerke, Rafael, Sebastian Giesen, Matija Lozej & Joost Röttger (2024): On household labour supply in sticky-wage HANK models. (Discussion paper / Deutsche Bundesbank 2024,01), Frankfurt am Main, 35 S.
Abstract
"Fragestellung: Neukeynesianische Modelle mit heterogenen Haushalten und trägen Löhnen nehmen gemeinhin an, dass lohnsetzende Gewerkschaften von allen Haushalten die gleiche Menge an Arbeit nachfragen. Unter dieser Annahme berücksichtigen Gewerkschaften nicht, dass (i) Haushalte sich hinsichtlich ihrer Bereitschaft zu arbeiten unterscheiden, und (ii) manche Haushalte unter Umständen mehr arbeiten müssen als sie eigentlich möchten. In dieser Arbeit widmen wir uns den makroökonomischen Konsequenzen von (i) und (ii). Beitrag: Wir betrachten zwei Variationen des weithin verwendeten Modellierungsansatzes, um die Bedeutung von (i) und (ii) herauszuarbeiten. Im ersten Fall betrachten wir eine Modellvariante, in der Gewerkschaften von unterschiedlichen Haushalten unterschiedlich viel Arbeit nachfragen können. Auf diese Weise können Gewerkschaften der Heterogenität der Haushalte hinsichtlich ihrer Produktivität und ihres Vermögens prinzipiell Rechnung tragen, d.h. (i) wird berücksichtigt. Im zweiten Fall erhalten wir die Annahme aufrecht, dass alle Haushalte gleich viel arbeiten. Um (ii) zu berücksichtigen, wird von den Gewerkschaften jedoch verlangt, die Lohnsetzung so vorzunehmen, dass kein Haushalt mehr arbeitet als er möchte. Ergebnisse: Für den Fall unterschiedlich viel arbeitender Haushalte zeigen wir, dass Gewerkschaften es für optimal befinden, die Menge an Arbeitsstunden für sämtliche Haushalte zu beschränken. Dies bedeutet, dass niemand mehr arbeiten muss als er möchte. Diese Modellvariante trägt entsprechend beiden oben genannten Aspekten simultan Rechnung. Indem Gewerkschaften die finanzielle Lage der Haushalte bei der Arbeitsallokation berücksichtigen, kann die Wirkung idiosynkratischer Schocks auf das Budget einzelner Haushalte durch individuelle Anpassungen bei den Arbeitsstunden gesenkt werden. Auf gesamtwirtschaftlicher Ebene senkt diese Absicherungsfunktion individuell angepasster Arbeitsstunden den Effekt makroökonomischer Schocks im Vergleich zum Fall einheitlicher Arbeitsstunden. Hintergrund dieser Unterschiede ist die abgeschwächte Reaktion der gesamten Arbeitsstunden in der Ökonomie. Wenn Gewerkschaften von allen Haushalten die gleiche Menge an Arbeit nachfragen, jedoch über die Lohnsetzung hinreichend Anreize setzen müssen, damit niemand mehr arbeitet als er möchte, kommt es zu nennenswerten Unterschieden im Vergleich zum Referenzfall mit einheitlichem Arbeitsangebot. Insbesondere verhalten sich die Löhne deutlich flexibler, damit sichergestellt ist, dass kein Haushalt mehr arbeitet als er möchte. Infolgedessen reagiert auch die Inflation deutlich sensitiver, weil Firmen die stärkeren Änderungen bei ihren Kosten an die Verbraucher entsprechend weitergeben." (Autorenreferat, IAB-Doku)
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Literaturhinweis
Endogenous job destruction risk and aggregate demand shortages (2024)
Zitatform
Gnocato, Nicolò (2024): Endogenous job destruction risk and aggregate demand shortages. (Temi di discussione / Banca d'Italia 1444), Rom, 58 S.
Abstract
"This paper studies, analytically and quantitatively, the occurrence of demand-deficient recessions due to uninsurable unemployment risk when jobs are endogenously destroyed. The ensuing unemployment fears induce a precautionary saving motive that counteracts the desire to borrow during recessions: negative productivity shocks may cause falling natural interest rates and positive unemployment gaps. Analytically, these demand-deficient recessions are shown to require a lesser degree of real wage rigidity when jobs are destroyed endogenously rather than exogenously. Quantitatively, the demand-deficient nature of supply-driven recessions can only be captured when accounting for endogenous job destruction." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
How Cyclical Is the User Cost of Labor? (2024)
Kudlyak, Marianna;Zitatform
Kudlyak, Marianna (2024): How Cyclical Is the User Cost of Labor? (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16888), Bonn, 22 S., Appendix.
Abstract
"In employment relationships, a wage is an installment payment on an implicit long-term agreement between a worker and a firm. The price of labor that impacts firm's hiring decisions, instead, reflects the hiring wage as well as the impact of economic conditions at the time of hiring on future wages. Measured by the labor's user cost, the price of labor is substantially more pro-cyclical than the new-hire wage or the average wage. The strong procyclicality of the price of labor calls for other forces for cyclical labor demand to explain employment fluctuations." (Author's abstract, IAB-Doku) ((en))
Ähnliche Treffer
spätere (möglicherweise abweichende) Version erschienen in: The Journal of Economic Perspectives, 38 (2024), 2, 159-180Weiterführende Informationen
auch erschienen als: Working Paper Series 2024-10, Federal Reserve Bank of San Francisco -
Literaturhinweis
Automation, Bargaining Power, and Labor Market Fluctuations (2024)
Zitatform
Leduc, Sylvain & Zheng Liu (2024): Automation, Bargaining Power, and Labor Market Fluctuations. In: American Economic Journal. Macroeconomics, Jg. 16, H. 4, S. 311-349. DOI:10.1257/mac.20220181
Abstract
"We argue that the threat of automation weakens workers’ bargaining power in wage negotiations, dampening wage adjustments and amplifying unemployment fluctuations. We make this argument based on a business cycle model with labor market search frictions, generalized to incorporate automation decisions. In the model, procyclical automation threats create endogenous real wage rigidity that amplifies labor market fluctuations. The automation mechanism is consistent with empirical evidence. It is also quantitatively important for explaining the large volatilities of unemployment and vacancies relative to that of real wages, a puzzling observation through the lens of standard business cycle models." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Global managers, local workers: Wage setting inside a multinational firm (2024)
Minni, Virginia;Zitatform
Minni, Virginia (2024): Global managers, local workers: Wage setting inside a multinational firm. (CEP discussion paper / Centre for Economic Performance 1975), London, 18 S.
Abstract
"How are wages set within a multinational firm? Combining cross-country data on wages and labor regulations with personnel records of a large multinational firm, I find that wage setting depends on the rank of the employee in the firm hierarchy. For managers, wages are set by the headquarters regardless of local labor market conditions. For factory workers, wages are adjusted according to country-specific wages and labor regulations. These results suggest that the multinational’s internal labor market shields managers against changes in external market conditions, while the firm adapts to local labor markets for factory workers." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Job security, asymmetric information, and wage rigidity (2024)
Zitatform
Snell, Andy, Heiko Stüber & Jonathan P. Thomas (2024): Job security, asymmetric information, and wage rigidity. In: European Economic Review, Jg. 161, 2023-10-23. DOI:10.1016/j.euroecorev.2023.104622
Abstract
"We consider a labor market with risk averse workers, directed search and asymmetric information in which firms can commit to wage contracts but not to retain workers. The model predicts that in downturns (i) there is equal treatment of incumbents and new hires, (ii) wages are insensitive to the severity of the downturn, (iii) this leads to an amplified employment effect, and (iv) wages are determined by forecasts of labor market conditions rather than actual values. By contrast in upswings, new-hire wages are more attuned to actual conditions than forecasts, whilst incumbent wages remain relatively rigid. We find that these novel predictions are well supported in German administrative data." (Author's abstract, IAB-Doku, © Elsevier) ((en))
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Literaturhinweis
Defining the problem of low wage growth in Australia and Denmark: From the actors' perspectives (2023)
Zitatform
Andersen, Søren Kaj, Chris F. Wright & Russell D. Lansbury (2023): Defining the problem of low wage growth in Australia and Denmark: From the actors' perspectives. In: European journal of industrial relations, Jg. 29, H. 2, S. 177-194. DOI:10.1177/09596801221132424
Abstract
"Low wage growth is a challenge common to many OECD countries including countries with very different institutional systems. This paper utilises and extends Rochefort and Cobb’s (1993) ‘problem definition’ framework to analyse how employer and union representatives in Australia and Denmark explain the causes of low wage growth. Drawing on elite interviews, which allow us to assess the nuance of actors’ perceptions, we find disagreement among Australian actors about the role of the collective bargaining system in contributing to low wage growth. Despite disagreement over the extent of the low wage growth problem in Denmark, both unions and employers expressed confidence in the ability of the bargaining system to resolve it. We argue that the greater degree of consensus in Denmark compared with Australia reflects differences in national institutional systems and knowledge regimes, which have influenced the ways actors in these countries perceive low wage growth." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Minimum Wages, Wage Dispersion and Financial Constraints in Firms (2023)
Zitatform
Arabzadeh, Hamzeh, Almut Balleer, Britta Gehrke & Ahmet Ali Taskin (2023): Minimum Wages, Wage Dispersion and Financial Constraints in Firms. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16455), Bonn, 56 S.
Abstract
"This paper studies how minimum wages affect the wage distribution if firms face financial constraints. Using German employer-employee data and firm balance sheets, we document that the within-firm wage dispersion decreases more with higher minimum wages when firms are financially constrained. We introduce financial frictions into a search and matching labor market model with stochastic job matching, imperfect information, and endogenous effort. In line with the empirical literature, the model predicts that a higher minimum wage reduces hirings and separations. Firms become more selective such that their employment and wage dispersion fall. If effort increases strongly, firms may increase employment at the expense of higher wage dispersion. Financially constrained firms are more selective and reward effort less. As a result, within-firm wage dispersion and employment in these firms fall more with the minimum wage." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Recent Developments in the Distribution of Labour Income and Skills (2023)
Bellmann, Lutz ; Dustmann, Christian ; Biewen, Martin ; Fanfani, Bernardo ; Oberfichtner, Michael ; Fitzenberger, Bernd ; Caldwell, Sydnee; Ostermann, Kerstin ; Spitz-Oener, Alexandra; Müller, Steffen ;Zitatform
Bellmann, Lutz; Christian Dustmann, Martin Biewen, Bernardo Fanfani, Michael Oberfichtner, Bernd Fitzenberger, Sydnee Caldwell, Kerstin Ostermann, Alexandra Spitz-Oener & Steffen Müller (sonst. bet. Pers.) (2023): Recent Developments in the Distribution of Labour Income and Skills. In: IAB-Forum H. 15.12.2023 Nürnberg. DOI:10.48720/IAB.FOO.20231215.02
Abstract
"Contributing to a better understanding of wage determination and wage distribution as well as job skills – that was the aim of the international conference “Recent Developments in Wage Determination, Distribution, and Job Skills” at the IAB." (Author's abstract, IAB-Doku) ((en))
Beteiligte aus dem IAB
Bellmann, Lutz ; Dustmann, Christian ; Oberfichtner, Michael ; Fitzenberger, Bernd ; Ostermann, Kerstin ; Spitz-Oener, Alexandra;Ähnliche Treffer
auch deutschsprachig erschienen -
Literaturhinweis
Aktuelle Entwicklungen bei der Verteilung der Arbeitseinkommen und Kompetenzen (Podium) (2023)
Bellmann, Lutz ; Dustmann, Christian ; Biewen, Martin ; Fanfani, Bernardo ; Oberfichtner, Michael ; Fitzenberger, Bernd ; Caldwell, Sydnee; Ostermann, Kerstin ; Spitz-Oener, Alexandra; Müller, Steffen ;Zitatform
Bellmann, Lutz; Christian Dustmann, Martin Biewen, Bernardo Fanfani, Michael Oberfichtner, Bernd Fitzenberger, Sydnee Caldwell, Kerstin Ostermann, Alexandra Spitz-Oener & Steffen Müller (sonst. bet. Pers.) (2023): Aktuelle Entwicklungen bei der Verteilung der Arbeitseinkommen und Kompetenzen (Podium). In: IAB-Forum H. 30.10.2023 Nürnberg. DOI:10.48720/IAB.FOO.20231030.01
Abstract
"Zu einem besseren Verständnis der Lohnfindung und Lohnverteilung sowie der beruflichen Qualifikationen beizutragen – das war das Ziel der internationalen Konferenz „Recent Developments in Wage Determination, Distribution, and Job Skills“ am IAB." (Autorenreferat, IAB-Doku)
Beteiligte aus dem IAB
Bellmann, Lutz ; Dustmann, Christian ; Oberfichtner, Michael ; Fitzenberger, Bernd ; Ostermann, Kerstin ; Spitz-Oener, Alexandra;Ähnliche Treffer
also released in English -
Literaturhinweis
Labor economics (2023)
Zitatform
Borjas, George J. (2023): Labor economics. New York: MacGraw-Hill, 494 S.
Abstract
"Labor Economics, ninth edition by George J. Borjas provides a modern introduction to labor economics, surveying the field with an emphasis on both theory and facts. Labor Economics is thoroughly integrated with the adaptive digital tools available in McGraw-Hill’s Connect, proven to increase student engagement and success in the course. All new Data Explorer questions using data simulation to help students grasp concepts Materials are fresh and up to date by introducing and discussing the latest research studies where conceptual or empirical contributions have increased our understanding of the labor market. The book has undergone Diversity, Equity, and Inclusion reviews to implement content around topics including generalizations and stereotypes, gender, abilities/disabilities, race/ethnicity, sexual orientation, diversity of names, and age." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Macroeconomic Dynamics with Rigid Wage Contracts (2023)
Zitatform
Broer, Tobias, Karl Harmenberg, Per Krusell & Erik Öberg (2023): Macroeconomic Dynamics with Rigid Wage Contracts. In: The American economic review. Insights, Jg. 5, H. 1, S. 55-72. DOI:10.1257/aeri.20210672
Abstract
"We adapt the wage contracting structure in Chari (1983) to a dynamic, balanced-growth setting with recontracting as in Calvo (1983). The resulting wage-rigidity framework dampens income effects in the short run, thus allowing significant responses of hours to aggregate shocks. In reduced form, the model dynamics are similar to that in Jaimovich and Rebelo (2009), with their habit parameter replaced by our probability of wage-contract resetting. That is, if wage contracts are reset frequently, labor supply behaves in accordance with King, Plosser, and Rebelo (1988) preferences, whereas if they are never reset, we obtain the setting in Greenwood, Hercowitz, and Huffman (1988)." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Endogenous Labor Supply in an Estimated New-Keynesian Model: Nominal versus Real Rigidities (2023)
Cairó, Isabel ; Pfajfar, Damjan; Chung, Hess T.; Morales-Jimenez, Camilo; Ferrante, Francesco ; Fuentes-Albero, Cristina;Zitatform
Cairó, Isabel, Hess T. Chung, Francesco Ferrante, Cristina Fuentes-Albero, Camilo Morales-Jimenez & Damjan Pfajfar (2023): Endogenous Labor Supply in an Estimated New-Keynesian Model: Nominal versus Real Rigidities. (Finance and economics discussion series / Board of Governors of the Federal Reserve System 2023-069), Washington, DC, 57 S.
Abstract
"The deep deterioration in the labor market during the Great Recession, the subsequent slow recovery, and the missing disinflation are hard to reconcile for standard macroeconomic models. We develop and estimate a New-Keynesian model with financial frictions, search and matching frictions in the labor market, and endogenous intensive and extensive labor supply decisions. We conclude that the estimated combination of the low degree of nominal wage rigidities and high degree of real wage rigidities, together with the small role of pre-match costs relative to post-match costs, are key in successfully forecasting the slow recovery in unemployment and the missing disinflation in the aftermath of the Great Recession. We find that endogenous labor supply data are very informative about the relative degree of nominal and real wage rigidities and the slope of the Phillips curve. We also find that none of the model-based labor market gaps are a sufficient statistic of labor market slack, but all contain relevant information about the state of the economy summarized in a new indicator for labor market slack we put forward." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Staggered wages, unanticipated shocks and firms’ adjustments (2023)
Zitatform
Caloia, Francesco G., Jante Parlevliet & Mauro Mastrogiacomo (2023): Staggered wages, unanticipated shocks and firms’ adjustments. In: Journal of macroeconomics, Jg. 76. DOI:10.1016/j.jmacro.2023.103521
Abstract
"This paper empirically investigates the employment and wage effects of contract staggering, i.e., the asynchronous and infrequent way in which wages adjust to changes in the economic environment. Using an identification strategy based on exogenous start dates of collective agreements around the Great Recession, we estimate the effect of increases in base wages on firms’ labor cost adjustments. Our analysis is based on a large employers-employees dataset merged to collective agreements in the Netherlands, a country in which collective bargaining is dominant and contract staggering is relatively pervasive. The main result is that staggered wage setting has no real effect on employment. We find significant employment losses only in sectors covered by contracts with much longer durations than those normally assumed in macroeconomic models featuring staggered wages. Instead, we show that firms adjust labor costs by curbing other pay components such as bonuses and benefits and incidental pay. The overall result supports the idea that wage rigidities are not the main source of employment fluctuations." (Author's abstract, IAB-Doku, © 2023 Elsevier) ((en))
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Literaturhinweis
Sticky Wages on the Layoff Margin (2023)
Zitatform
Davis, Steven J. & Pawel M. Krolikowski (2023): Sticky Wages on the Layoff Margin. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16351), Bonn, 57 S.
Abstract
"We design and field an innovative survey of unemployment insurance (UI) recipients that yields new insights about wage stickiness on the layoff margin. Most UI recipients express a willingness to accept wage cuts of 5-10 percent to save their jobs, and one third would accept a 25 percent cut. Yet worker-employer discussions about cuts in pay, benefits or hours in lieu of layoffs are exceedingly rare. When asked why employers don't propose job-saving pay cuts, four-in-ten UI recipients don't know. Sixteen percent say cuts would undermine morale or lead the best workers to quit, and 39 percent don't think wage cuts would save their jobs. For lost union jobs, 45 percent say contractual restrictions prevent wage cuts. Among those on permanent layoff who reject our hypothetical pay cuts, half say they have better outside options, and 38 percent regard the proposed pay cut as insulting. An estimated one-quarter of the layoffs violate the condition for bilaterally efficient separations that holds in leading theories of job separations, frictional unemployment, and job ladders. We draw on our findings and other evidence to assess theories of wage stickiness and its role in layoffs." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Wage Adjustment in Efficient Long-Term Employment Relationships (2023)
Zitatform
Elsby, Michael, Axel Gottfries, Pawel Krolikowski & Gary Solon (2023): Wage Adjustment in Efficient Long-Term Employment Relationships. (Working paper / Federal Reserve Bank of Cleveland 23-23), Cleveland, OH, 45 S. DOI:10.26509/frbc-wp-202323
Abstract
"We present a model in which efficient long-term employment relationships are sustained by wage adjustments prompted by shocks to idiosyncratic productivity and the arrival of outside job offers. In accordance with casual and formal evidence, these wage adjustments occur only sporadically, due to the presence of renegotiation costs. The model is amenable to analytical solution and yields new insights into a number of labor market phenomena, including: (1) key features of the empirical distributions of changes in pay among job stayers; (2) a property of near-“memorylessness” in wage dynamics that implies that initial hiring wages have only limited influence on later wages and allocation decisions; and (3) a crucial role for nonbase pay—specifically, recruitment and retention bonuses—in sustaining efficient employment relationships." (Author's abstract, IAB-Doku) ((en))
Ähnliche Treffer
auch erschienen als NBER working paper 33149 -
Literaturhinweis
Bonus Question: Does Flexible Incentive Pay Dampen Unemployment Dynamics? (2023)
Zitatform
Gaur, Meghana, John Grigsby, Jonathon Hazell & Abdoulaye Ndiaye (2023): Bonus Question: Does Flexible Incentive Pay Dampen Unemployment Dynamics? (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16481), Bonn, 86 S.
Abstract
"We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage cyclicality from incentives does not dampen unemployment dynamics: the response of unemployment to shocks is first-order equivalent in an economy with flexible incentive pay and without bargaining, vis-a-vis an economy with rigid wages. Second, wage cyclicality from bargaining dampens unemployment dynamics through the standard mechanism. Third, our calibrated model suggests 46% of wage cyclicality in the data arises from incentives. A standard model without incentives calibrated to weakly procyclical wages, matches unemployment dynamics in our incentive pay model calibrated to strongly procyclical wages." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Downward Rigidity in the Wage for New Hires (2023)
Hazell, Jonathon; Taska, Bledi;Zitatform
Hazell, Jonathon & Bledi Taska (2023): Downward Rigidity in the Wage for New Hires. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16512), Bonn, 79 S.
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." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Wage rigidity and destabilizing spirals (2023)
Zitatform
Jung, Euiyoung (2023): Wage rigidity and destabilizing spirals. In: Journal of macroeconomics, Jg. 77. DOI:10.1016/j.jmacro.2023.103546
Abstract
"This paper investigates the impact of real wage rigidity on the (de)stabilizing role of demand feedback. I show that destabilizing supply–demand feedback driven by countercyclical precautionary savings demand against uninsured unemployment risk is fundamentally a matter of rigid real wage adjustments over business cycles. Given the estimated wage rigidity consistent with aggregate labor market dynamics in the United States, the quantitative results suggest that the unemployment risk channel has a minor impact on aggregate volatility." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))
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Literaturhinweis
Lohnentwicklung und Lohnstauchung im Öffentlichen Dienst (2023)
Lesch, Hagen; Eckle, Lennart;Zitatform
Lesch, Hagen & Lennart Eckle (2023): Lohnentwicklung und Lohnstauchung im Öffentlichen Dienst. (IW-Kurzberichte / Institut der Deutschen Wirtschaft Köln 2023,88), Köln, 3 S.
Abstract
"Nachdem im April 2023 bereits ein Tarifergebnis für die Beschäftigten des öffentlichen Dienstes des Bundes und der Kommunen erreicht wurde, finden aktuell Tarifverhandlungen für die Beschäftigten der Länder statt. Die Gewerkschaften fordern 10,5 Prozent mehr Lohn, mindestens aber 500 Euro. Setzen sie dies durch, würde die ohnehin schon stark komprimierte Lohnstruktur weiter gestaucht." (Autorenreferat, IAB-Doku)
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Literaturhinweis
Wage Stagnation and the Decline of Standardized Pay Rates, 1974-1991 (2023)
Zitatform
Massenkoff, Maxim & Nathan Wilmers (2023): Wage Stagnation and the Decline of Standardized Pay Rates, 1974-1991. In: American Economic Journal. Applied Economics, Jg. 15, H. 1, S. 474-507. DOI:10.1257/app.20200819
Abstract
"Using new establishment-by-occupation microdata, we show that the use of discretionary wage setting significantly expanded in the 1970s and 1980s. Increasingly, wages for blue-collar workers were not standardized by job title or seniority but instead subject to managerial discretion. When establishments abandoned standardized pay rates, wages fell, particularly for the lowest-paid workers in a job and for those in establishments that previously paid above market rates. This shift away from standardized pay rates, in context of a broader decline in worker bargaining power, accelerated the decline in real wages experienced by blue-collar workers in the 1980s." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Fairness and Gini decomposition (2023)
Moramarco, Domenico;Zitatform
Moramarco, Domenico (2023): Fairness and Gini decomposition. In: Economics Letters, Jg. 233. DOI:10.1016/j.econlet.2023.111409
Abstract
"We propose a new decomposition of the Gini coefficient that nests a structuralist and an individualistic definition of unfair inequality, as well as ex ante and ex post measures of inequality of opportunity. We illustrate the decomposition on Belgian data, highlighting the source of a consistent difference between these views about unfair inequality." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))
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Literaturhinweis
A Multisector Perspective on Wage Stagnation (2023)
Ngai, L. Rachel; Sevinc, Orhun;Zitatform
Ngai, L. Rachel & Orhun Sevinc (2023): A Multisector Perspective on Wage Stagnation. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16356), Bonn, 36 S.
Abstract
"Low-skilled workers are concentrated in sectors that experience fast productivity growth and yet their real wages have been stagnating. We document evidence from the U.S. to show the importance of sectoral reallocations. Key to our two-sector model is the fall in the relative price of the low-skill intensive sector caused by faster productivity growth. When outputs are complements across sectors, this leads to a reallocation of low-skilled workers to the high-skill intensive sector where their marginal product is stagnant. We show that this mechanism is quantitatively important for the stagnation of low-skill real wages and their divergence from aggregate labor productivity during 1980-2010." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Firm Wages in a Frictional Labor Market (2023)
Rudanko, Leena;Zitatform
Rudanko, Leena (2023): Firm Wages in a Frictional Labor Market. In: American Economic Journal. Macroeconomics, Jg. 15, H. 1, S. 517-550. DOI:10.1257/mac.20200440
Abstract
"This paper studies wage setting in a directed search model of multiworker firms facing within-firm equity constraints on wages. The constraints reduce wages, as firms exploit their monopsony power over their existing workers, rendering wages less responsive to productivity in doing so. They also give rise to a time inconsistency in the dynamic firm problem, as firms face a less elastic labor supply in the short run than in the long run, making commitment to future wages valuable. Constrained firms find it profitable to fix wages, and doing so is good for worker welfare and resource allocation in equilibrium." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Labour market rigidity and expansionary austerity (2023)
Zitatform
Tafuro, Andrea (2023): Labour market rigidity and expansionary austerity. In: Journal of macroeconomics, Jg. 75. DOI:10.1016/j.jmacro.2022.103495
Abstract
"This study provides new evidence on how labour market rigidities affect the transmission of fiscal consolidations using a sample of 17 OECD countries. Owing to a novel empirical approach, the outcomes of consolidations are modelled as a function of employment and wage rigidities. The evidence confirms that tax-based consolidations are distortionary, while expenditure-based consolidations have wealth effects. These effects are then magnified by flexible employment and rigid wages, while they are moderated by rigid employment and flexible wages. This indicates that labour market conditions influence how fiscal consolidation is propagated in the economy by affecting both the magnitude and the transmission channels of consolidation plans. This result has crucial policy implications and suggests that the design of consolidation plans should account for the labour market structure." (Author's abstract, IAB-Doku, © 2023 Elsevier) ((en))
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Literaturhinweis
How Sticky Wages in Existing Jobs Can Affect Hiring (2022)
Zitatform
Bils, Mark, Yongsung Chang & Sun-Bin Kim (2022): How Sticky Wages in Existing Jobs Can Affect Hiring. In: American Economic Journal. Macroeconomics, Jg. 14, H. 1, S. 1-37. DOI:10.1257/mac.20190338
Abstract
"We consider a matching model of employment with flexible wages for new hires but sticky wages within matches. Unlike most models of sticky wages, we allow effort to respond if wages are too high or too low. In the Mortensen-Pissarides model, employment is not affected by wage stickiness in existing matches. But it is in our model. If wages of matched workers are stuck too high, firms require more effort, lowering the value of additional labor and reducing hiring. We find that effort's response can greatly increase wage inertia." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Nominal and Real Wages in the UK, 1750 - 2015: Mean Reversion, Persistence and Structural Breaks (2022)
Zitatform
Caporale, Guglielmo Maria & Luis A. Gil-Alana (2022): Nominal and Real Wages in the UK, 1750 - 2015. Mean Reversion, Persistence and Structural Breaks. (CESifo working paper 10018), München, 14 S.
Abstract
"This paper analyses the stochastic properties of UK nominal and real wages over the period 1750-2015 using fractional integration techniques. Both the original series and logged ones are analysed. The results generally suggest that nominal wages exhibit a higher degree of persistence, which reflects relatively long lags between inflation and wage adjustments. Endogenous break tests are also carried out and various structural breaks are identified in both series. On the whole the corresponding subsample estimates imply an increase over time in the degree of persistence of both series." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Who Set Your Wage? (2022)
Zitatform
Card, David (2022): Who Set Your Wage? In: The American economic review, Jg. 112, H. 4, S. 1075-1090. DOI:10.1257/aer.112.4.1075
Abstract
"I discuss the recent literature that has led to new interest in the idea of monopsonistic wage setting. Building on advances in search theory and in models of differentiated products, researchers have used a number of different strategies to identify the elasticity of firm-specific labor supply. A growing consensus is that firms have some wage-setting power, though many questions remain about the sources of that power." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Endogenous Separations, Wage Rigidities, and Unemployment Volatility (2022)
Zitatform
Carlsson, Mikael & Andreas Westermark (2022): Endogenous Separations, Wage Rigidities, and Unemployment Volatility. In: American Economic Journal. Macroeconomics, Jg. 14, H. 1, S. 332-354. DOI:10.1257/mac.20180314
Abstract
"We show that in microdata, as well as in a search and matching model with flexible wages for new hires, wage rigidities of incumbent workers have substantial effects on separations and unemployment volatility. Allowing for an empirically relevant degree of wage rigidities for incumbent workers drives unemployment volatility as well as the volatility of vacancies and tightness to that in the data. Thus, the degree of wage rigidity for newly hired workers is not a sufficient statistic for determining the effect of wage rigidities on macroeconomic outcomes. This finding affects the interpretation of a large empirical literature on wage rigidities." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Endogenous wage indexation and aggregate shocks (2022)
Zitatform
Carrillo, Julio A., Gert Peersman & Joris Wauters (2022): Endogenous wage indexation and aggregate shocks. In: Journal of macroeconomics, Jg. 72. DOI:10.1016/j.jmacro.2022.103417
Abstract
"New Keynesian DSGE models assume a constant degree of wage indexation to past inflation, neglecting empirical and institutional evidence of a time-varying degree. We build a DSGE model with utility-maximizing workers that can endogenously choose the wage indexation rule. We find that workers index their wage to past inflation when shocks to productivity and the nominal anchor drive output fluctuations. By contrast, they index wages to the inflation target when aggregate demand shocks dominate. We further show that this decentralized equilibrium is not socially optimal, but explains the time-varying degree of wage indexation in US data very well." (Author's abstract, IAB-Doku, © 2022 Elsevier) ((en))
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Literaturhinweis
Do Bonuses Offset the Allocative Effects of Downward Rigid Base Wages? (2022)
Zitatform
Funk, Anne Kathrin & Daniel Kaufmann (2022): Do Bonuses Offset the Allocative Effects of Downward Rigid Base Wages? In: AEA papers and proceedings, Jg. 112, S. 486-490. DOI:10.1257/pandp.20221097
Abstract
"We measure the labor market outcomes of employees with downward rigid base wages after an unexpected deflationary shock in Switzerland using a firm survey matched with Social Security register data. The employees that additionally receive downward flexible compensation, such as bonuses, are less likely to lose their job after a deflationary shock than those only receiving a base wage. Only a modest share of employees receives downward flexible compensation, however. Therefore, these compensation schemes do not offset the overall allocative effects of downward rigid base wages." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Do Sticky Wages Matter? New Evidence from Matched Firm Survey and Register Data (2022)
Zitatform
Funk, Anne Kathrin & Daniel Kaufmann (2022): Do Sticky Wages Matter? New Evidence from Matched Firm Survey and Register Data. In: Economica, Jg. 89, H. 355, S. 689-712. DOI:10.1111/ecca.12412
Abstract
"We study the causal effects of downward nominal wage rigidity after a deflationary monetary policy shock using Swiss data on employee-level contractual wages matched with income and employment from social security register data. We exploit the discontinuity around the origin of the wage growth distribution to compare the outcomes of individuals with wage freezes (treatment group) and small wage cuts (control group) before and after an unexpected decision by the Swiss National Bank leading to a 1% decline of the price level. Locally (that is, near the origin of the wage growth distribution), downward nominal wage rigidities cause a 4.4% decline in income and a 0.7 percentage point increase in the probability of unemployment. In the aggregate, income declines by 0.3% and the probability of unemployment increases by 0.05 percentage points." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))
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Literaturhinweis
State Dependent Government Spending Multipliers: Downward Nominal Wage Rigidity and Sources of Business Cycle Fluctuations (2022)
Zitatform
Jo, Yoon J. & Sarah Zubairy (2022): State Dependent Government Spending Multipliers: Downward Nominal Wage Rigidity and Sources of Business Cycle Fluctuations. (NBER working paper 30025), Cambridge, Mass, 69 S. DOI:10.3386/w30025
Abstract
"We consider a New Keynesian model with downward nominal wage rigidity (DNWR) and show that government spending is much more effective in stimulating output in a low-inflation recession relative to a high-inflation recession. The government spending multiplier is large when DNWR binds, but the nature of recession matters due to the opposing response of inflation. In a demand-driven recession, inflation falls, preventing real wages from falling, leading to unemployment, while inflation rises in a supply-driven recession limiting the consequences of DNWR on employment. We document supporting empirical evidence, using both historical time series data and cross-sectional data from U.S. states." (Author's abstract, IAB-Doku) ((en))
Ähnliche Treffer
auch erschienen als: Working Papers, 20210127-001 -
Literaturhinweis
Job Search Intensity and Wage Rigidity in Business Cycles (2022)
Uemura, Yuki;Zitatform
Uemura, Yuki (2022): Job Search Intensity and Wage Rigidity in Business Cycles. (KIER discussion paper series 1078), Kyoto, 34 S.
Abstract
"This paper examines the job search behavior of unemployed workers over the business cycle. The paper first constructs a standard search and matching model with endogenous search efforts, wage rigidity, and a generalized matching function. Contrary to the existing literature, the proposed model generates both procyclical and countercyclical search intensity, depending on the degree of wage rigidity and the elasticity parameter of the matching function. The paper then calibrates the model to the U.S. economy and provides various impulse response analyses. The numerical exercises show that the model successfully and simultaneously reproduces countercyclical search efforts and sizable labor market fluctuations." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Employment and wage effects of extending collective bargaining agreements: Sectoral collective contracts reduce inequality but may lead to job losses among workers with earnings close to the wage floors (2022)
Zitatform
Villanueva, Ernesto & Effrosyni Adamopoulou (2022): Employment and wage effects of extending collective bargaining agreements. Sectoral collective contracts reduce inequality but may lead to job losses among workers with earnings close to the wage floors. (IZA world of labor 136), Bonn, 12 S. DOI:10.15185/izawol.136.v2
Abstract
"Der Gesamteffekt der Allgemeinverbindlichkeit von Tarifverträgen hängt davon ab, wie viele Arbeitsplätze aufgrund der tariflich geregelten Lohnuntergrenzen und sonstigen Arbeitsbedingungen abgebaut werden. Um die Auswirkungen auf Löhne und Beschäftigung bewerten zu können, müssen Informationen über Tarifverträge mit Längsschnittdaten zu Arbeitgebern und Arbeitnehmern verknüpft werden. Neue Erkenntnisse der Forschung zeigen, dass negative Effekte meist auf Arbeitnehmer mit Verdiensten in der Nähe der Mindestlöhne beschränkt sind. Öffnungsklauseln und Repräsentativitätserfordernisse können dem entgegenwirken." (Autorenreferat, IAB-Doku)
Weiterführende Informationen
deutsche Kurzfassung -
Literaturhinweis
Endogenous Growth, Downward Wage Rigidities and Optimal Inflation (2021)
Zitatform
Abbritti, Mirko, Agostino Consolo & Sebastian Weber (2021): Endogenous Growth, Downward Wage Rigidities and Optimal Inflation. (IMF working paper 2021,208), Washington, DC, 49 S.
Abstract
"Standard New Keynesian (NK) models feature an optimal inflation target well below two percent, limited welfare losses from business cycle fluctuations and long-term monetary neutrality. We develop a NK framework with labour market frictions, endogenous productivity and downward wage rigidity (DWR) which challenges these results. The model features a non-vertical long-run Phillips curve between inflation and unemployment and a trade-off between price distortions and output hysteresis that change the welfare-maximizing inflation level. For a plausible set of parameters, the optimal inflation target is in excess of two percent, a target value commonly used across central banks. Deviations from the optimal target carry welfare costs multiple times higher than in traditional NK models. The main reason is that endogenous growth and DWR generate asymmetric and hysteresis effects on unemployment and output. Price level targeting or a Taylor-rule responding to the unemployment rate can handle better the asymmetric and hysteresis effects in our model and deliver significant welfare gains. Our results are robust to the inclusion of the effective lower bound on the monetary policy interest rate." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Labor Market Concentration and Stayers' Wages: Evidence from France (2021)
Zitatform
Bassanini, Andrea, Cyprien Batut & Eve Caroli (2021): Labor Market Concentration and Stayers' Wages. Evidence from France. (IZA discussion paper 14912), Bonn, 20 S.
Abstract
"We investigate the impact of labor market concentration on stayers' wages, where stayers are defined as individuals who were already employed in the same firm the year before. Using administrative data for France, we show that the elasticity of stayers' wages to labor market concentration ranges between -0.0185 and -0.0230, depending on the instrument we use, and controlling for labor productivity and local product market concentration. This represents between about two thirds and three fourth of the elasticity we estimate for new hires. Given the strong wage rigidities characterizing the French labor market, this estimate can be considered a lower bound of the effect of labor market concentration on stayers' wages in an international perspective." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Uncertainty, Wages and the Business Cycle (2021)
Cacciatore, Matteo; Ravenna, Federico;Zitatform
Cacciatore, Matteo & Federico Ravenna (2021): Uncertainty, Wages and the Business Cycle. In: The Economic Journal, Jg. 131, H. 639, S. 2797-2823. DOI:10.1093/ej/ueab019
Abstract
"We show that limited wage flexibility in economic downturns generates strong and state-dependent amplification of uncertainty shocks. It also explains the cyclical behaviour of empirical measures of uncertainty. In the presence of matching frictions, an occasionally binding constraint on downward wage adjustment enhances the concavity of firms' hiring rule, resulting in an endogenous profit risk-premium. In turn, higher uncertainty increases the profit risk-premium when the economy operates close to the wage constraint, deepening a recession. Non-linear local projections and vector autoregression estimates support the model predictions. In addition, we show that measured uncertainty rises in a recession even without uncertainty shocks." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Rigid Wages, Endogenous Job Destruction, and Destabilizing Spirals (2021)
Zitatform
Jung, Euiyoung (2021): Rigid Wages, Endogenous Job Destruction, and Destabilizing Spirals. (PSE working paper / Paris School of Economics 2021-27), Paris, 71 S.
Abstract
"This paper studies the theoretical link between real wage rigidity and the destabilizing mechanism driven by the countercyclical precautionary saving demand against unemployment risk. First, I analytically show that destabilizing supply-demand feedback is a general equilibrium outcome of rigid labor cost adjustments. Second, the calibrated wage rigidity consistent with empirical labor market dynamics suggests that real wages are less likely to be sufficiently rigid to cause the destabilizing mechanism. Finally, the way we model job destruction dynamics can have a fundamental impact on the range of real wage rigidity consistent with empirical labor market dynamics and, thus, economic dynamics. Therefore, in contrast to the presumption of many researchers, assuming exogenous job destruction is not innocuous." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Can reference points explain wage rigidity?: Experimental evidence (2021)
Zitatform
Koch, Christian (2021): Can reference points explain wage rigidity? Experimental evidence. In: Journal for labour market research, Jg. 55. DOI:10.1186/s12651-021-00284-2
Abstract
"I examine whether reference points can provide an explanation for rigid wages in recessions. Even though a recession provides a good reason to adjust wages downward, workers’ perception of a “fair wage” may depend on their previous wage, their reference point. Using a laboratory experiment, I test this idea by varying whether initially concluded contracts—and their stipulated wages—can serve as reference points. My experimental results show that with initial contracts workers punish wage cuts even in recessions, leading to considerable more rigid wages. Surprisingly, this is even true without an “objective” justification to feel entitled to initial contracts." (Author's abstract, © 2021 Springer Nature) ((en))
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Literaturhinweis
Wage gains from foreign ownership: evidence from linked employer-employee data (2021)
Zitatform
Köllö, János, István Boza & László Balázsi (2021): Wage gains from foreign ownership: evidence from linked employer-employee data. In: Journal for labour market research, Jg. 55. DOI:10.1186/s12651-021-00286-0
Abstract
"We compare the wages of skilled workers in multinational enterprises (MNEs) versus domestic firms, the earnings of domestic firm workers with past, future and no MNE experience, and estimate how the presence of ex-MNE peers affects the wages of domestic firm employees. The analysis relies on monthly panel data covering half of the Hungarian population and their employers in 2003 - 2011. We identify the returns to MNE experience from changes of ownership, wages paid by new firms of different ownership, and the movement of workers between enterprises. We find high contemporaneous and lagged returns to MNE experience and significant spillover effects. Foreign acquisition has a moderate wage impact, but there is a wide gap between new MNEs and domestic firms. The findings, taken together, suggest that MNE employees accumulate partly transferable knowledge, valued in the high-wage segment of the local economy that is connected with the MNEs via worker turnover." (Author's abstract, © 2021 Springer) ((en))
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Literaturhinweis
The Extent of Downward Nominal Wage Rigidity: New Evidence from Payroll Data (2021)
Zitatform
Schaefer, Daniel & Carl Singleton (2021): The Extent of Downward Nominal Wage Rigidity: New Evidence from Payroll Data. (Discussion papers / University of Reading, Department of Economics 2021-22), Reading, 57 S.
Abstract
"Low inflation has forced the topic of downward nominal wage rigidity (DNWR) back to the centre stage of macroeconomics. We use over a decade of representative payroll data from Great Britain to document novel facts about wage adjustments. We find that basic wages drive the cyclicality of marginal labour costs, which makes them the most relevant wage measure for macroeconomic models that incorporate wage rigidity. Basic wages show substantially more evidence of downward rigidity than previously documented. Every fifth hourly-paid and every sixth salaried employee normally sees no basic wage change from year-to-year, and very few experience cuts. Wage freezes were more common in the Great Recession and are far more likely in smaller firms. We also find evidence that employers compress wage growth when inflation is low, indicating that DNWR constrains wage setting. Further, we show that the wages of new hires and incumbent employees respond equally to the business cycle. These results all point to the importance of including DNWR in macroeconomic and monetary policy models, and our simulations demonstrate that the empirical extent of DNWR can cause considerable long-run output losses." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Uncovering the mechanism(s): Financial contraints and wages (2020)
Zitatform
Arabzadeh, Hamzeh, Almut Balleer & Britta Gehrke (2020): Uncovering the mechanism(s): Financial contraints and wages. (IZA discussion paper 13979), Bonn, 63 S.
Abstract
"How do wages respond to financial recessions? Based on a dynamic macroeconomic model with frictions in the labor and the financial market, we address two prominent mechanism through which firms' financial constraints amplify unemployment and explore their effect on wages. First, the financial labor wedge reduces wages. Second, financial constraints may interact with aggregate labor market conditions in various ways putting upward or downward pressure on wages. We test partial-equilibrium implications of these theoretical mechanisms based on a large data set for Germany for 2006 to 2014 that combines administrative data on workers and wages with detailed information on the balance sheets of firms. Both mechanisms play a role empirically. Using our estimates as central calibration targets in our model, we document that financial recessions are associated with a substantial decline in both unemployment and wages. Financial constraints therefore weaken the direct link between wage rigidity and unemployment volatility." (Author's abstract, IAB-Doku) ((en))
Beteiligte aus dem IAB
Gehrke, Britta; -
Literaturhinweis
Estimating variances for modeled wage estimates (2020)
Guciardo, Christopher J.;Zitatform
Guciardo, Christopher J. (2020): Estimating variances for modeled wage estimates. In: Monthly labor review, Jg. 143, H. March, S. 1-22. DOI:10.21916/mlr.2020.3
Abstract
"The Modeled Wage Estimates (MWE) program publishes mean hourly wages by occupation, geographic area, and worker characteristic (for example, full-time workers). The MWE program combines data from two U.S. Bureau of Labor Statistics programs: the Occupational Employment Statistics (OES) and the National Compensation Survey (NCS). For the first few years of the MWE program, there were no estimates of variance. In 2018, variance estimates were published for the first time for the MWE program, for the May 2017 reference month. This article first shows how the OES and NCS microdata are combined to produce a mean wage estimate. It then focuses on the new variance estimation methodology, highlighting how the variability of both the OES and NCS sample designs are simultaneously captured. A small sample of MWE mean wages and variances are provided for the most recent estimates, for the May 2018 reference month." (Author's abstract, IAB-Doku) ((en))