Downward Nominal Wage Rigidity in Japan: Is Price Stability Costly?
Takeshi Kimura and
Kazuo Ueda ()
Bank of Japan Working Paper Series from Bank of Japan
Abstract:
This paper analyzes whether or not Japanese nominal wages are rigid downward. By using time series cross section data on wages from the Japanese Wage Census, we find that wages do not exhibit serious downward rigidity. They do decline when macro labor market conditions worsen even in periods of low inflation rate. Japanese wages per man-hour, however, do not respond to micro shocks. Firms have avoided large employment adjustments in response to micro shocks by changing overtime hours worked. We tentatively conclude that there is no long-run trade off between the goal of stable prices and low unemployment in Japan.
Date: 1997-06
References: Add references at CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
http://www.boj.or.jp/en/research/wps_rev/wps_1997/cwp97e01.htm/ (text/html)
Related works:
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: https://EconPapers.repec.org/RePEc:boj:bojwps:97-e-1r
Access Statistics for this paper
More papers in Bank of Japan Working Paper Series from Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Bank of Japan ().