Some Evidence on the Importance of Sticky Wages

@inproceedings{Barattieri2010SomeEO,
  title={Some Evidence on the Importance of Sticky Wages},
  author={Alessandro Barattieri and Susanto Basu and Peter S. Gottschalk},
  year={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 data from the Survey of Income and Program Participation (SIPP) for the period 1996-1999. The SIPP provides high-frequency information on wages, employment and demographic characteristics for a large and… CONTINUE READING
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