Real and Nominal Wage Rigidities in Collective Bargaining Agreements

Louis Christofides and Paris Nearchou ()
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Paris Nearchou: University of Cyprus

No 2799, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: An earlier study of wage agreements, reached in the Canadian unionized sector between 1976-99, found that wage adjustment is characterized by downward nominal rigidity and significant spikes at zero. We extend this earlier approach to encompass the possibility of real as well as nominal wage rigidity. The addition of real wage rigidity variables enhances earlier results and suggests that real rigidity increases significantly the mass in the histogram bin containing the mean anticipated rate of inflation, as well as in adjacent bins. Downward nominal wage rigidities and spikes at zero remain important.

Keywords: nominal wage rigidities; real (search for similar items in EconPapers)
JEL-codes: J31 J52 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2007-05
New Economics Papers: this item is included in nep-bec, nep-cba and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Labour Economics, 2007, 14(4), 695-715

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Journal Article: Real and nominal wage rigidities in collective bargaining agreements (2007)
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