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Some evidence on the importance of sticky wages

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Some evidence on the importance of sticky wages

Barattieri, Alessandro; Basu, Susanto; Gottschalk, Peter - 2010

Nominal wage stickiness is an important component of recent medium-scale structural macroeconomic models, but to date there has been little microeconomic evidence supporting the assumption of sluggish nominal wage adjustment. We present evidence on the frequency of nominal wage adjustment using...