Why Wages Don't Fall during a Recession

@inproceedings{Bewley1999WhyWD,
  title={Why Wages Don't Fall during a Recession},
  author={Truman F. Bewley},
  year={1999}
}
A deep question in economics is why wages and salaries don't fall during recessions. this is not true of other prices, which adjust relatively quickly to reflect changes in demand and supply. Although economists have posited many theories to account for wage rigidity, none is satisfactory. eschewing "top-down" theorizing, the author explored the puzzle by interviewing - during the recession of the early 1990s - over 300 business executives and labour leaders as well as professional recruiters… 

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