We show that wage setting in the Colombian manufacturing industry is not fundamentally driven by labor productivity in contrast to the standard theoretical prediction. On the contrary, internal institutional arrangements – payroll taxation, the minimum wage or the price wedge between...

The paper provides evidence concerning incidence and sources of nominal wage rigidity in servicesand manufacturing, using a new and large employer survey on wage and price setting behaviour forGermany. We observe that wage freezes are more frequent in services than in manufacturing, whereaswage...

The paper provides evidence concerning incidence and sources of nominal wage rigidity in services and manufacturing, using a new and large employer survey on wage and price setting behaviour for Germany. We observe that wage freezes are more frequent in services than in manufacturing, whereas...