We show that U.S. manufacturing wages during the Great Depression were importantly determined by forces on firms …

In this paper, we analyze the connection between value added, wages, and labor market flows at the establishment level …

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 …