Wage Policy and Endogenous Wage Rigidity: A Representative View From the Inside

Topics:
Labor Contracts,
Unions
Tags:
Institute For Labour Market Policy Evaluation,
Wage Rigidity
Source:
Institute for Labour Market Policy Evaluation

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Overview: This paper reports the results from a representative survey of human resource managers in 885 Swedish firms. It estimates that during the severe recession of the 1990s, only 1.1 percent of workers took a cut in regular nominal pay. The analysis suggests that endogenous wage rigidity plays an important role in most segments of the labor market, sources of endogenous wage rigidity differ significantly between the high- and low-end of the labor market, and between large and small firms, and mechanisms of wage rigidity tend to complement each other.

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Format: PDF | Size: 639KB | Date: Aug 2002 | Pages: 87

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