Gielen, Anne C.; Ours, Jan C. van - Institute for the Study of Labor (IZA) - 2006
wages to prevent them to quit. Similarly, workers with a high layoff probability give up some of their wage to prevent them … may be related to downward wage rigidity. While it is easy to renegotiate higher wages to prevent quits, it is much more … difficult to renegotiate lower wages to prevent layoffs even if that would overall be beneficial to the workers involved. …