EconPapers    
Economics at your fingertips  
 

Downward Nominal Wage Rigidity in the United States during and after the Great Recession

Bruce Fallick (), Daniel Villar Vallenas and William Wascher

No 201602R, Working Papers from Federal Reserve Bank of Cleveland

Abstract: Rigidity in wages has long been thought to impede the functioning of labor markets. In this paper, we investigate the extent of downward nominal wage rigidity in US labor markets using job-level data from a nationally representative establishment-based compensation survey collected by the Bureau of Labor Statistics. We use several distinct methods to test for downward nominal wage rigidity and to assess whether such rigidity is less or more severe in the presence of negative economic shocks than in more normal economic times. We find a significant amount of downward nominal wage rigidity in the United States and no evidence that the high degree of labor market distress during the Great Recession reduced downward nominal wage rigidity. We further find a lower degree of nominal rigidity at multi-year horizons.

JEL-codes: E24 J3 (search for similar items in EconPapers)
Pages: 48
Date: 2020-03-17
New Economics Papers: this item is included in nep-lma and nep-mac
Note: The first version of this paper was published in January 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.26509/frbc-wp-201602r Full Text

Related works:
Working Paper: Downward Nominal Wage Rigidity in the United States During and After the Great Recession (2020) Downloads
Working Paper: Downward Nominal Wage Rigidity in the United States during and after the Great Recession (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: https://EconPapers.repec.org/RePEc:fip:fedcwq:87615

Ordering information: This working paper can be ordered from

DOI: 10.26509/frbc-wp-201602r

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-04-08
Handle: RePEc:fip:fedcwq:87615