how wages adjust to unfavorable shocks that raise the risk of displacement through firm closing, and to what extent a wage … to their inability to adjust wages downward. In fact, minimum wage restrictions were seen to increase the failure rates …. -- wages ; displacement risk ; concessions …

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 …