We study the wage-change distributions in union contractsreached in Canada between 1976-1999. We use non …-parametric tests to check for nominal wage rigidity and find that it is present during low inflation periods. …

We study the wage-change distribution in union contracts reached in Canada between 1976-1999. We use non …-parametric tests to check for nominal wage rigidity and find that it is present during low inflation periods. …

We study the wage-change distributions in union contracts reached in Canada between 1976-1999. We use non …-parametric tests to check for nominal wage rigidity and find that it is present during low inflation periods …

The existence of downward nominal wage rigidity (DNWR) has often been used to justify a positive inflation target. It … is traditionally assumed that positive inflation could "grease the wheels" of the labour market by putting downward … pressure on real wages, easing labour market adjustments during a recession. A rise in the inflation target would attenuate the …