Downward nominal wage rigidity in services: direct evidence from a firm survey

The paper uses a new German employer survey on wage setting practices to analyze incidence and sources of nominal wage rigidity in services vs. manufacturing. We observe that wage freezes are significantly more frequent and wage cuts less frequent in services. Reasons preventing wage cuts reported by employers suggest that fear of excess worker turnover could explain this distinct behavior.

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Year of publication:	2009
Authors:	Radowski, Daniel ; Bonin, Holger
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Lohnrigidität \| Effizienzlohn \| Dienstleistungssektor \| Verarbeitendes Gewerbe \| Vergleich \| Arbeitsmobilität \| Deutschland \| Nominal wage rigidity \| efficiency wages \| manufacturing and services \| Germany

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Series:	IZA Discussion Papers ; 3923
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	589803468 [GVK] hdl:10419/35359 [Handle]
Classification:	J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	EconStor

Persistent link: https://www.econbiz.de/10010268979