Establishing downward nominal wage rigidity through cyclical changes in the wage distribution

No 20211216-001, Working Papers from Texas A&M University, Department of Economics

Abstract: I examine the cyclical properties of nominal wage change distributions across time and US states using nationally representative household surveys from 1979 to 2018. The novel finding is that the share of workers with no wage changes, which accounts for the large spike at zero in the nominal wage change distribution, is more countercyclical than the share of workers with wage cuts. I analyze heterogeneous agent models with six alternative wage-setting schemes and conclude that the model with downward nominal wage rigidity is the most consistent with empirical findings regarding the shape and cyclicality of wage change distributions.

Keywords: Downward nominal wage rigidity; nominal wage change distribution; wage stickiness; business cycle. (search for similar items in EconPapers)
JEL-codes: E24 E32 J30 (search for similar items in EconPapers)
Pages: 73 pages
Date: 2021-12-16
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://pvsessions.tamu.edu/RePEc/jo_establishingD ... angedistribution.pdf First version, 2021 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to pvsessions.tamu.edu:443 (No such host is known. )

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:txm:wpaper:20211216-001

Access Statistics for this paper

More papers in Working Papers from Texas A&M University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Pedro Bento ().