Knoppik, Christoph and Beissinger, Thomas (2003) How rigid are nominal wages? Evidence and implications for Germany. SCANDINAVIAN JOURNAL OF ECONOMICS, 105 (4). pp. 619-641. ISSN 0347-0520
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Many recent attempts to find evidence on downward nominal wage rigidity in micro data have suffered from problems such as composition bias and the effects of measurement error. In this paper, a model of proportional downward nominal wage rigidity is developed which avoids these problems by taking into account the determinants of wage changes and the measurement process that leads to observable earnings changes. We find a high degree of downward nominal wage rigidity in German micro data. Its real implications for individual expected wage growth, the aggregate wage level and equilibrium unemployment have marked effects for rates of inflation lower than 3 percent.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | INFLATION; MARKET; nominal wage rigidity; equilibrium unemployment; Phillips curve; inflation target; Germany |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Wirtschaftspolitik (Professor Dr. Christoph Knoppik) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 27 Jul 2021 10:45 |
| Last Modified: | 27 Jul 2021 10:45 |
| URI: | https://pred.uni-regensburg.de/id/eprint/38385 |
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