EconPapers    
Economics at your fingertips  
 

Downward Nominal Wage Rigidity in the OECD

Steinar Holden () and Fredrik Wulfsberg ()

No 10/2005, Memorandum from Oslo University, Department of Economics

Abstract: This paper explores the existence of downward nominal wage rigidity (DNWR) in 19 OECD countries, over the period 1973–1999, using data for hourly nominal wages at industry level. Based on a novel nonparametric statistical method, which allows for country and year specific variation in both the median and the dispersion of industry wage changes, we reject the hypothesis of no DNWR. The fraction of wage cuts prevented due to DNWR has fallen over time, from 70 percent in the 1970s to 11 percent in the late 1990s, but the number of industries affected by DNWR has increased. DNWR is more prevalent when inflation is high,unemployment is low, union density is high and employment protection legislation is strict.

Keywords: Downward nominal wage rigidity; OECD; employment protection legislation; wage setting (search for similar items in EconPapers)
JEL-codes: C14 C15 E31 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2005-03-01
New Economics Papers: this item is included in nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Published in B.E. Journal of Macroeconomics (Advances), 2008.

Downloads: (external link)
http://www.sv.uio.no/econ/english/research/unpubli ... 005/Memo-10-2005.pdf (application/pdf)

Related works:
Journal Article: Downward Nominal Wage Rigidity in the OECD (2008) Downloads
Working Paper: Downward Nominal Wage Rigidity in the OECD (2007) Downloads
Working Paper: Downward nominal wage rigidity in the OECD (2007) Downloads
Working Paper: Downward Nominal Wage Rigidity in Europe (2004) 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:hhs:osloec:2005_010

Access Statistics for this paper

More papers in Memorandum from Oslo University, Department of Economics Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Mari Strønstad Øverås ().

 
Page updated 2020-05-27
Handle: RePEc:hhs:osloec:2005_010