rigidity of total compensation (that is, wages plus benefits). In general, we find significantly stronger evidence of downward … greater flexibility of compensation does not seem to reflect the deliberate attempt by firms to use benefits to circumvent …

have a stronger bargaining position when they try to prevent a cut in nominal wages. If inflation is so low that some … a long run trade off between inflation and unemployment for low levels of inflation. The prediction that low inflation …

stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers' stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

allows the benefits of inflation (downward wage flexibility) to be separated from disruptive uncertainty about inflation rate …As inflation rates in the United States decline, analysts are asking if there are economic reasons to hold the rates at … levels above zero. Previous studies of whether inflation greases the wheels of the labor market ignore inflation's potential …

, while employment at will facilitates efficient mobility. Inflation erodes the real value of a fixed contract wage over time …

mutual consent. If inflation is so low that nominal wages have to be cut, the workers have strategic advantage in the wage … negotiations, which induces higher unemployment in equilibrium. The upshot is a long run tradeoff between inflation and … unemployment for low levels of inflation. Specifically, downward nominal wage rigidity, and excess unemployment at zero inflation …

-parametric tests to check for nominal wage rigidity and find that it is present during low inflation periods. …

-setting that allows the benefits of inflation (downward wage flexibility) to be separated from disruptive uncertainty about …As inflation rates in the United States decline, analysts are asking if there are economic reasons to hold the rates at … levels above zero. Previous studies of whether inflation "greases the wheels" of the labor market ignore inflation …