Time-dependent or state-dependent wage-setting? Evidence from periods of macroeconomic instability

• 成果类型: Article
• 署名作者: Sigurdsson, Josef; Sigurdardottir, Rannveig
• 署名单位: Stockholm University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.01.001
• 发表日期: 2016
• 页码: 50-66
• 关键词: Wage rigidity; Wage setting; Microdata evidence

摘要

Administrative data on monthly wages in Iceland during 1998-2010 provide new insight into nominal wage rigidity. Unlike the data used in previous work, ours have a higher frequency, minimal measurement error, and a long sample including a period of substantial macroeconomic instability. We find that the monthly frequency of nominal wage changes is 13 percent. Although nominal wage cuts are rare, their frequency rises following a large macroeconomic shock. Timing of wage changes is both time-dependent and state-dependent: we find evidence of synchronization of adjustment and contracts of fixed duration, but also that inflation and unemployment over the wage spell affect the timing of adjustment. (C) 2016 Elsevier B.V. All rights reserved.