Kurzbeschreibung

Plenty of studies document the existence of downward nominal wage rigidity (DNWR). Elsby (2009) argues that the macroeconomic effects of DNWR may be weak, because DNWR leads to a compression of wage increases. Our analyses try to determine whether Elsby’s predictions and findings apply to Germany too. In addition to OLS regressions suggested by Elsby we apply SUR and QR.