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
Wages are flexible aren't they?: evidence from monthly micro wage data (2009)
Zitatform
Lünnemann, Patrick & Ladislav Wintr (2009): Wages are flexible aren't they? Evidence from monthly micro wage data. (European Central Bank. Working paper series 1074), Frankfurt am Main, 62 S.
Abstract
"This paper assesses the degree of wage flexibility in Luxembourg using an administrative data set on individual base wages covering the entire economy over the period 2001-2006 with monthly frequency. We find that the wage flexibility at the discretion of the firm is rather low once we limit measurement error and remove wage changes due to institutional factors (indexation, changes in statutory minimum wage, age and marital status). The so adjusted frequency of wage change lies between 5% and 7%. On average, wages change less often than consumer prices. Less than one percent of (nominal) wages are cut both from month to month and from year to year. Due to automatic wage indexation, wages appear to be subject to substantial downward real wage rigidity. Finally, wage changes tend to be highly synchronised as they are concentrated around the events of wage indexation and the month of January." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Real and nominal wage rigidity in a model of equal-treatment contracting (2009)
Zitatform
Martins, Pedro, Andy Snell & Jonathan P. Thomas (2009): Real and nominal wage rigidity in a model of equal-treatment contracting. (IZA discussion paper 4346), Bonn, 29 S.
Abstract
"Following insights by Bewley (1999a), this paper analyses a model with downward rigidities in which firms cannot pay discriminate based on a year of entry to a firm, and develops an equilibrium model of wages and unemployment. We solve for the dynamics of wages and unemployment under conditions of downward wage rigidity, where forward looking firms take into account these constraints. Using simulated productivity data based on the post-war US economy, we analyse the ability of the model to match certain stylised labour market facts." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
The unemployment volatility puzzle: Is wage stickiness the answer? (2009)
Zitatform
Pissarides, Christopher A. (2009): The unemployment volatility puzzle: Is wage stickiness the answer? In: Econometrica, Jg. 77, H. 5, S. 1339-1369. DOI:10.3982/ECTA7562
Abstract
"I discuss the failure of the canonical search and matching model to match the cyclical volatility in the job finding rate. I show that job creation in the model is influenced by wages in new matches. I summarize microeconometric evidence and find that wages in new matches are volatile and consistent with the model's key predictions. Therefore, explanations of the unemployment volatility puzzle have to preserve the cyclical volatility of wages. I discuss a modification of the model, based on fixed matching costs, that can increase cyclical unemployment volatility and is consistent with wage flexibility in new matches." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Labor market dynamics under long-term wage contracting (2009)
Rudanko, Leena;Zitatform
Rudanko, Leena (2009): Labor market dynamics under long-term wage contracting. In: Journal of monetary economics, Jg. 56, H. 2, S. 170-183. DOI:10.1016/j.jmoneco.2008.12.009
Abstract
"Recent research seeking to explain the strong cyclicality of US unemployment emphasizes the role of wage rigidity. This paper proposes a micro-founded model of wage rigidity - an equilibrium business cycle model of job search, where risk neutral firms post optimal long-term contracts to attract risk averse workers. Equilibrium contracts feature wage smoothing, limited by the inability of parties to commit to contracts. The model is consistent with aggregate wage data if neither worker nor firm can commit, producing too rigid wages otherwise. Wage rigidity does not lead to a substantial increase in the cyclical volatility of unemployment." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Lohnsetzungsverhalten in Deutschland: neuere empirische Befunde (2009)
Zitatform
(2009): Lohnsetzungsverhalten in Deutschland. Neuere empirische Befunde. In: Monatsbericht der Deutschen Bundesbank, Jg. 61, H. 4, S. 17-30.
Abstract
"Lohnflexibilität ist für die Anpassung des Arbeitsmarktes an konjunkturelle und strukturelle Veränderungen von zentraler Bedeutung. Gerade in einer Währungsunion mit relativ schwacher regionaler Mobilität bedarf es eines funktionierenden Lohnmechanismus, da der Wechselkurs als Ausgleichsventil ausfällt. Zudem sind die Löhne ein wesentlicher Kostenfaktor für die Kalkulation der Absatzpreise. Die Lohnentwicklung beeinflusst damit die kurz- bis mittelfristige Inflationsdynamik und ist deshalb aus geldpolitischer Sicht sehr wichtig. Das Europäische System der Zentralbanken hat aus diesem Grund ein Forschungsnetzwerk eingesetzt, das die wesentlichen Bestimmungsfaktoren der Lohnsetzung und deren Zusammenhang mit der Preisbildung vertieft untersuchen soll. Ergebnisse einer Umfrage zum Lohn- und Preissetzungsverhalten von Unternehmen zeigen, dass die Lohnrigiditäten in Deutschland in der Vergangenheit teilweise stärker ausgeprägt waren als in anderen Ländern des Euro-Raums. Zwar ist dies im Zusammenhang mit dem insgesamt moderateren Lohnanstieg in Deutschland zu sehen. Trotz der Reformen des Arbeitsmarktes spielen demnach allerdings gesamtwirtschaftlich unerwünschte Lohnträgheiten immer noch eine erhebliche Rolle." (Autorenreferat, IAB-Doku)
Weiterführende Informationen
English version -
Literaturhinweis
The inflation-unemployment trade-off at low inflation (2008)
Zitatform
Benigno, Pierpaolo & Luca Antonio Ricci (2008): The inflation-unemployment trade-off at low inflation. (NBER working paper 13986), Cambridge, Mass., 39 S. DOI:10.3386/w13986
Abstract
"Wage setters take into account the future consequences of their current wage choices in the presence of downward nominal wage rigidities. Several interesting implications arise. First, nominal wages tend to be endogenously rigid also upward, at low inflation. Second, a closed-form solution for a long run Phillips curve relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes flatter as inflation declines. Third, macroeconomic volatility shifts the Phillips curve outward, implying that stabilization policies can play an important role in shaping the trade-off. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Analyse der Abwärtsnominallohnstarrheit in Mikrodaten (2008)
Bläs, Barno;Zitatform
Bläs, Barno (2008): Analyse der Abwärtsnominallohnstarrheit in Mikrodaten. Regensburg, 206 S.
Abstract
"Die Dissertation leistet einen Beitrag zur gegenwärtigen Diskussion um nach unten starre Nominallöhne. Die Arbeit besteht aus drei eigenständigen Aufsätzen.
Der erste Aufsatz 'Ausmaß und reale Konsequenzen nach unten starrer Nominallöhne: Eine Untersuchung für den deutschen Arbeitsmarkt' analysiert die Existenz, das Ausmaß sowie die realwirtschaftlichen Implikationen nach unten starrer Nominallöhne in Deutschland. Unter Verwendung von drei alternativen Modellvarianten für die proportionale Abwärtsnominallohnstarrheit wird auf Grundlage der IAB-Regionalstichprobe (1975-2001) nachgewiesen, dass das Ausmaß der Abwärtsnominallohnstarrheit in Deutschland erheblich ist. Die realen Implikationen der nach unten starren Nominallöhne fallen bei konstantem Rigiditätsgrad umso höher aus, je geringer die Inflationsrate ist. Für Inflationsraten unter zwei Prozent sind diese realen Effekte nicht mehr vernachlässigbar. Zusätzlich kann im Rahmen dieses Beitrags aufgezeigt werden, dass das Ausmaß der Abwärtsnominallohnstarrheit vom inflationären Umfeld selbst abhängt und in Phasen mit niedriger Inflation sinkt.
Das Anliegen des zweiten Beitrags 'Abwärtsnominal- und Tariflohnstarrheit in Deutschland' ist, sowohl nach unten starre Nominallöhne als auch starre Tariflöhne mit der Earnings-Function-Methode gleichzeitig zu untersuchen. Die Analysen werden mit der IAB Regionalstichprobe (1975-2001) separat für Arbeiter und Angestellte sowie für Frauen und Männer in West-Deutschland durchgeführt. Die Schätzungen legen nahe, dass der Lohnbildungsprozess in allen untersuchten Beschäftigtengruppen durch die Existenz von Abwärtslohnstarrheiten stark geprägt wird, wobei die Tariflohnstarrheit die Abwärtsnominallohnstarrheit dominiert. Im Unterschied zu vergleichbaren Studien können in diesem Beitrag mittels Monte-Carlo-Simulationen auch mögliche Probleme der Earnings-Function-Methode bei der gleichzeitigen Untersuchung von nach unten starren Nominallöhnen und Tariflöhnen aufgezeigt werden.
Der dritte Aufsatz 'Evidence of Downward Nominal Wage Rigidity' in European Micro Data, entstand in Zusammenarbeit mit Christoph Knoppik und Thomas Beissinger. Dieser Beitrag belegt die Existenz der Abwärtsnominallohnstarrheit international auf Grundlage des European Community Household Panel (1994-2001). Die Nutzung von vergleichbaren Daten sowie einer einheitlichen ökonometrischen Methode ermöglichen den direkten Vergleich der resultierenden Abwärtsnominallohnstarrheit in den untersuchten 12 EU-Ländern, die einen durchschnittlichen Rigiditätsgrad von 60 Prozent aufweisen. Die resultierenden Unterschiede zwischen den Ländern sind beträchtlich, können jedoch nicht durch die länderspezifischen Arbeitsmarktcharakteristika erklärt werden, was auf die Bedeutung von Fairnessüberlegungen und Geldillusion hindeutet." (Autorenreferat, IAB-Doku) -
Literaturhinweis
Monetary policy under downward nominal wage rigidity (2008)
Zitatform
Carlsson, Mikael & Andreas Westermark (2008): Monetary policy under downward nominal wage rigidity. In: The B.E. Journal of Macroeconomics, Jg. 8, H. 1, S. 1-61. DOI:10.2202/1935-1690.1809
Abstract
"We develop a New Keynesian model with staggered price and wage setting where downward nominal wage rigidity (DNWR) arises endogenously through the wage bargaining institutions. It is shown that the optimal (discretionary) monetary policy response to changing economic conditions then becomes asymmetric. Interestingly, in our baseline model we find that the welfare loss is actually slightly smaller in an economy with DNWR. This is due to that DNWR is not an additional constraint on the monetary policy problem. Instead, it is a constraint that changes the choice set and opens up for potential welfare gains due to lower wage variability. Another finding is that the Taylor rule provides a fairly good approximation of optimal policy under DNWR. In contrast, this result does not hold in the unconstrained case. In fact, under the Taylor rule, agents would clearly prefer an economy with DNWR before an unconstrained economy ex ante." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Downward wage rigidity and job mobility (2008)
Zitatform
Cornelissen, Thomas & Olaf Hübler (2008): Downward wage rigidity and job mobility. In: Empirical economics, Jg. 34, H. 2, S. 205-230. DOI:10.1007/s00181-007-0118-5
Abstract
Auf der Basis von Daten des sozioökonomischen Panels wird das Ausmaß der Abwärtslohnstarrheit in Deutschland ermittelt und es werden die Auswirkungen der Lohnstarrheit auf die individuelle Betroffenheit durch Entlassungen sowie auf die innerbetriebliche und zwischenbetriebliche Mobilität der Beschäftigten untersucht. Lohnstarrheit erhöht das Lohnniveau und führt so zu Lohnaufschwemmungen, welche sich negativ auf Abgänge, Entlassungen und Beförderungen auswirken. Die Stammbelegschaft ist dabei vor Entlassungen und Lohneinschnitten geschützt, während Randbelegschaften als Puffer dienen und sowohl durch Lohnflexibilität als auch durch prekäre Stellen bedroht sind. Eine Strategie der Arbeitgeber, die Lohnstarrheit zu umgehen, ist es Aufstiegmöglichkeiten für Mitarbeiter mit hohen Löhnen zu begrenzen. Dies weist darauf hin, dass es sich bei Lohnstarrheit um keine freiwillige Lohnstrategie handelt, sondern um eine tarifliche Bindung. Die Begrenzung der Beförderungsmöglichkeiten kann Lohnaufschwemmung durch großzügige Entlohnung nicht vollständig ausgleichen. (IAB)
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Literaturhinweis
How wage compression affects job turnover (2008)
Heymann, Frederik;Zitatform
Heymann, Frederik (2008): How wage compression affects job turnover. In: Journal of labor research, Jg. 29, H. 1, S. 11-26. DOI:10.1007/s12122-007-9030-1
Abstract
"I use Swedish establishment-level panel data to test the hypothesis of Bertola and Rogerson (Eur Econ Rev 41:1147-1171 1997) of a positive relation between the degree of wage compression and job reallocation. Results indicate that the effect of wage compression on job turnover is positive and significant in the manufacturing sector. The wage compression effect is stronger on job destruction than on job creation, consistent with downward wage rigidity. Further results include a strong positive relationship between the fraction of temporary employees and job turnover and a negative relationship between the amount of working-time flexibility and job reallocation." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Downward nominal wage rigidity in the OECD (2008)
Zitatform
Holden, Steinar & Fredrik Wulfsberg (2008): Downward nominal wage rigidity in the OECD. In: The B.E. Journal of Macroeconomics, Jg. 8, H. 1, S. 1-50. DOI:10.2202/1935-1690.1651
Abstract
"Recent microeconomic studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries, but critics argue that the effect might be undone by compositional changes and flexibility in wages of new entrants. Using data for hourly nominal wages at industry level, we explore the existence of DNWR on industry wages in 19 OECD countries, over the period 1973-1999. We propose a novel method to detect DNWR. We reject the hypothesis of no DNWR in the overall sample. The fraction of wage cuts prevented due to DNWR has fallen over time, from 61 percent in the 1970s to 16 percent in the late 1990s, but the number of industries affected by DNWR has increased. DNWR is more prevalent when unemployment is low and union density is high. Strict employment protection legislation also leads to fewer wage cuts." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Firm training and wage rigidity (2008)
Zitatform
Lechthaler, Wolfgang (2008): Firm training and wage rigidity. (Kieler Arbeitspapier 1452), Kiel, 39 S.
Abstract
"Although wage rigidity is among the most prominent subjects in modern economics, its effects on wage compression and firm training have thus far not been considered. This paper is trying to bridge this gap by using a simple two period model which can still by analyzed analytically. I am able to show that wage rigidity increases wage compression. However, contrary to previous work this is not sufficient to increase firms' training investments. The reason lies in the endogeneity of separations, which become more frequent." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
The firm as a community explaining asymmetric behavior and downward rigidity of wages (2008)
Lin, Chung-Cheng; Yang, C. C.;Zitatform
Lin, Chung-Cheng & C. C. Yang (2008): The firm as a community explaining asymmetric behavior and downward rigidity of wages. In: Journal of Economic Behavior and Organization, Jg. 68, H. 2, S. 390-400. DOI:10.1016/j.jebo.2007.10.002
Abstract
"This paper models the firm as a community à la Akerlof [Akerlof, G.A., 1980. A theory of social custom, of which unemployment may be one consequence. Quarterly Journal of Economics 94, 749-775] to account for asymmetric behavior and, in particular, downward rigidity of wages. It is shown that, through social interaction among workers in the firm community, wage cuts can give rise to a large, discontinuous fall in labor productivity (known as 'catastrophe'). Furthermore, this large fall in labor productivity will persist or display inertia (known as 'hysteresis') even if the wages are restored to the pre-cut level and beyond. Our catastrophe/hysteresis finding with respect to wage cuts can rationalize the downward rigidity of wage behavior and is consistent with the interview evidence of fragile worker morale emphasized by Bewley [Bewley, T.F., 1999. Why Wages Don't Fall During a Recession. Harvard University Press, Cambridge] and others in explaining why employers are sensitive to and refrain from cutting worker pay." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Biased technological shocks, relative wage rigidities and low-skilled unemployment (2008)
Pierrard, Olivier; Sneessens, Henri R.;Zitatform
Pierrard, Olivier & Henri R. Sneessens (2008): Biased technological shocks, relative wage rigidities and low-skilled unemployment. In: Scottish Journal of Political Economy, Jg. 55, H. 3, S. 330-352. DOI:10.1111/j.1467-9485.2008.00456.x
Abstract
"The contrast between the evolution over the last decades of the European Union (EU) and the US unemployment rates, especially for the low-skilled, is well known. A consensus view is that these different outcomes can be explained by the interactions between common shocks and specific institutional setups. In this paper, we emphasize the interactions between technological changes and wages rigidities. We construct a fully calibrated general equilibrium model with two types of jobs and two types of workers, and with search unemployment. Our simulations show that with wage rigidities, technological changes suffice to generate a continuous rise in the low-skilled unemployment rate and an almost unchanged high-skilled unemployment rate. Without wage rigidities, the unemployment rates remain unchanged but the wage dispersion widens." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Relative demand and supply of skills and wage rigidity in the United States, Britain, and Western Germany (2008)
Zitatform
Puhani, Patrick A. (2008): Relative demand and supply of skills and wage rigidity in the United States, Britain, and Western Germany. In: Jahrbücher für Nationalökonomie und Statistik, Jg. 228, H. 5/6, S. 573-585. DOI:10.1515/jbnst-2008-5-610
Abstract
In dem Beitrag wird ein erweitertes Modell von Katz und Murphy (1992) herangezogen, um die relative Qualifikationsnachfrage, das relative Qualifikationsangebot sowie die Lohnstarrheit in Deutschland zu schätzen. Auf der Grundlage von drei Datensätzen für Deutschland, von zwei Datensätzen für Großbritannien und eines Datensatzes für die USA werden die Veränderungen der Lohnstarrheit (Lohnkompression) in allen drei Ländern für die erste Hälfte der 1990er Jahre geschätzt. In diesem Zeitraum stieg die Arbeitslosigkeit in Deutschland an, während sie in Großbritannien und in den USA sank. Für diesen Zeitraum wird für Deutschland eine Lohnkompression (relative Lohnstarrheit) nachgewiesen, für Großbritannien und die USA hingegen eine Lohndekompression. Diese Befunde stimmen mit der Hypothese von Krugman (1994) überein. (IAB)
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Literaturhinweis
International spill-over effects of labour market rigidities (2008)
Spange, Morten;Zitatform
Spange, Morten (2008): International spill-over effects of labour market rigidities. In: Journal of macroeconomics, Jg. 30, H. 1, S. 157-178. DOI:10.1016/j.jmacro.2006.09.002
Abstract
"This paper analyses the implications of real wage rigidities in a two-country stochastic general equilibrium model. It is shown how real wage rigidities in one country affect welfare in both countries. By assuming that the labour unions within each country decide whether wages are flexible or rigid, it is found that wages will be flexible in either none, one or both of the countries. Hence, even in a symmetric model flexible wages in one country and rigid wages in the other may be an equilibrium. Since there are international spill-over effects of the choice of wage setting regime, the utilitarian solution is also considered. Interestingly, this does not necessarily entail more real wage flexibility than in the Nash equilibrium." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Wage incentives and wage rigidity: a representative view from within (2007)
Agell, Jonas; Bennmarker, Helge;Zitatform
Agell, Jonas & Helge Bennmarker (2007): Wage incentives and wage rigidity. A representative view from within. In: Labour economics, Jg. 14, H. 3, S. 347-369. DOI:10.1016/j.labeco.2006.04.002
Abstract
"A recent literature has used surveys of those who set wages to learn about the nature of wage incentives and the sources of wage rigidity. Methodologically, we overcome many of the objections that have been raised against this work. Substantively, we find that: (i) the reasons for real wage rigidity differ significantly between large and small firms, and between the high- and low-end of the labor market; (ii) efficiency wage mechanisms reinforce rigidities due to worker bargaining power; (iii) money illusion is a widespread phenomenon across all segments of the labor market; (iv) unions reinforce nominal wage rigidities due to external pay comparisons; (v) there appears to be gender differences in pay bargaining and work morale." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Nominal and real wage flexibility in EMU (2007)
Arpaia, Alfonso; Pichelmann, Karl;Zitatform
Arpaia, Alfonso & Karl Pichelmann (2007): Nominal and real wage flexibility in EMU. (European economy. Economic papers 281), Brüssel, 33 S.
Abstract
"Both common macroeconomic shocks and country-specific developments have subjected the flexibility of wage setting mechanisms in the euro area to a stress test in recent years. Against this background, this paper takes a fresh look at wage flexibility in EMU and attempts to draw a few lessons from the experience of the early years. First, we set the stage for the analysis by providing a brief description of the stylised facts regarding nominal and real wage and unit labour cost developments in the euro area over the recent business cycle. Then, the paper presents an empirical assessment of wage inertia based on new econometric estimates of a Phillips-curve type wage equation across euro area countries and offers an interpretation of the main findings with respect to nominal and real wage flexibility. Finally, we investigate the cyclical responsiveness of relative competitive positions among euro area countries. We conclude that from a bird's eye perspective euro area wage and labour cost dynamics have been quite benign in the past couple of years. However, our estimates suggest that persistent cross-country differences in wage and labour cost developments have not always reflected warranted adjustment needs; they are rather indicative of an eventually insufficient degree of nominal and real wage flexibility in the euro area." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
The incidence of nominal and real wage rigidities in Great Britain: 1978-98 (2007)
Zitatform
Barwell, Richard D. & Mark E. Schweitzer (2007): The incidence of nominal and real wage rigidities in Great Britain: 1978-98. In: The economic journal, Jg. 117, H. 524, S. F553-F569. DOI:10.1111/j.1468-0297.2007.02096.x
Abstract
"This article analyses the extent of rigidities in wage setting in Great Britain over the 1980s and 1990s. Our estimation strategy follows the generalised Altonji and Devereux (2000) model discussed in the introduction to this Feature, but it includes modifications to include some special features of the British data. Our estimates reveal that real rigidities in wage setting are more prevalent than nominal rigidities in Great Britain, although the incidence of these real wage rigidities has fallen gradually over time. If firms cannot cut real wages in response to negative demand shocks they may resort to laying off workers. Our results support this micro-foundation of the wage-unemployment Phillips curve: workers who are more likely to be protected from wage cuts are also more likely to lose their jobs." (Author's abstract, IAB-Doku) ((en))
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Literaturhinweis
Real and nominal wage rigidities and the rate of inflation: evidence from West German micro data (2007)
Zitatform
Bauer, Thomas K., Holger Bonin, Lorenz Goette & Uwe Sunde (2007): Real and nominal wage rigidities and the rate of inflation. Evidence from West German micro data. In: The economic journal, Jg. 117, H. 524, S. F508-F529. DOI:10.1111/j.1468-0297.2007.02094.x
Abstract
"This article examines real and nominal wage rigidities in West Germany. Using regionally disaggregated register data for 1975-2001, we estimate the extent of both types of wage rigidities from the observed distribution of individual wage changes, taking into account possible measurement error. The fraction of workers facing wage increases that are caused by nominal and particularly real wage rigidity is substantial. The extent of real rigidity rises with inflation and falls with regional unemployment, whereas the opposite holds for nominal rigidity. Overall, the incidence of wage rigidity, which accelerates unemployment growth, is most likely minimised in a moderate inflation environment." (Author's abstract, IAB-Doku) ((en))