A carregar...
Publicação
Wage adjustments under extreme downward nominal wage rigidity
| Nome: | Descrição: | Tamanho: | Formato: | |
|---|---|---|---|---|
| 443.75 KB | Adobe PDF |
Autores
Orientador(es)
Resumo(s)
Using a rich and highly accurate dataset for Portugal spanning from 1986
to 2013, this paper analyzes the determinants of downward nominal wage
rigidity, mainly focusing on macroeconomic factors. The data supports the
hypothesis that recessionary periods alongside with low in ation contribute
to a higher degree of wage rigidity, as measured by the incidence of nominal
wage freezes. It is further highlighted how this lack of wage adjustments con-
tributed to an increase in labor costs which culminated in a wage markup of
6-7%. This paper, thus seems to corroborate the argument that low in ation
did exacerbated the downward in exibility of (real) wages after the Great
Recession.