Economics at your fingertips  

Downward nominal wage rigidity in Canada: Evidence from micro-level data

Dany Brouillette, Olena Kostyshyna and Natalia Kyui

Canadian Journal of Economics, 2018, vol. 51, issue 3, 968-1002

Abstract: We assess the importance of downward nominal wage rigidity (DNWR) in Canada using employer-level administrative data from the major wage settlements (MWS) and household-based survey data from the Survey of Labour Income Dynamics (SLID). MWS data cover large unionized firms in Canada, while SLID is a rich rotating panel representative of the employed population in Canada. Combining both sources of information allows for an extensive analysis of DNWR in the Canadian labour market. We find large shares of wage freezes and smaller shares of wage cuts in both MWS and SLID. Shares of freezes are higher at lower CPI inflation rates, based on provincial data. These observations are consistent with the presence of DNWR. DNWR in Canada appears to be larger than in other countries such as the United States, the United Kingdom and European countries. The incidence of DNWR is heterogeneous across firms and workers characteristics. Wages report less DNWR over longer horizons.

JEL-codes: J3 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (text/html)
access restricted to subscribers

Related works:
Journal Article: Downward nominal wage rigidity in Canada: Evidence from micro‐level data (2018) Downloads
Working Paper: Downward Nominal Wage Rigidity in Canada: Evidence from Micro- Level Data (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Katherine Cuff

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

Page updated 2020-08-06
Handle: RePEc:cje:issued:v:51:y:2018:i:3:p:968-1002