Beyond the spike at zero: Understanding nominal wage rigidity through empirical and model-based approaches

• 成果类型: Article
• 署名作者: Jo, Yoon Joo
• 署名单位: Texas A&M University System; Texas A&M University College Station
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2025.104117
• 发表日期: 2025
• 关键词: Downward nominal wage rigidity; Nominal wage change distribution; Wage stickiness; business cycle

摘要

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.