Downward Nominal Wage Rigidity in Services: Direct Evidence from a Firm Survey

  • Daniel Radowski, Holger Bonin, Deutsche Bundesbank
  • Published 2009

Abstract

Downward Nominal Wage Rigidity in Services: Direct Evidence from a Firm Survey The paper uses a new German employer survey on wage setting practices to analyze incidence and sources of nominal wage rigidity in services vs. manufacturing. We observe that wage freezes are significantly more frequent and wage cuts less frequent in services. Reasons preventing wage cuts reported by employers suggest that fear of excess worker turnover could explain this distinct behavior. JEL Classification: J31

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Cite this paper

@inproceedings{Radowski2009DownwardNW, title={Downward Nominal Wage Rigidity in Services: Direct Evidence from a Firm Survey}, author={Daniel Radowski and Holger Bonin and Deutsche Bundesbank}, year={2009} }