Sticky Wages: Evidence from Quarterly Microeconomic Data

Hervé Le Bihan, Jérémi Montornes and Thomas Heckel

American Economic Journal: Macroeconomics, 2012, vol. 4, issue 3, 1-32

Abstract: Using an original micro-dataset from France, we investigate nominal wage stickiness. Nominal wage changes are found to occur at a quarterly frequency of around 38 percent over our sample period, and to be to a large extent staggered across establishments, and very synchronized within establishments. We carry out an econometric analysis of wage changes based on a two-threshold sample selection model. Our results are that the timing of wage adjustments is time-dependent as opposed to state-dependent, there is evidence of predetermination in wage changes, and both backward and forward-looking behavior is relevant in wage setting. (JEL E24, E52, J31)

JEL-codes: E24 E52 J31 (search for similar items in EconPapers)
Date: 2012
Note: DOI: 10.1257/mac.4.3.1
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Citations: View citations in EconPapers (83)

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Related works:
Working Paper: Sticky Wages. Evidence from Quarterly Microeconomic Data (2008)
Working Paper: Sticky wages: evidence from quarterly microeconomic data (2008)
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