Wage Rigidity and Employment Outcomes: Evidence from Administrative Data

• 成果类型: Article
• 署名作者: Ehrlich, Gabriel; Montes, Joshua
• 署名单位: University of Michigan System; University of Michigan; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20200125
• 发表日期: 2024
• 页码: 147-206
• 关键词: equal treatment; works councils; unemployment; Germany; COSTS; real; fluctuations; CONTRACTS; layoffs; density

摘要

This paper examines the relationship between downward nominal wage rigidity and employment outcomes using linked employer -employee data. Wage rigidity prevents 27.1 percent of counterfactual wage cuts, with a standard deviation of 19.2 percent across establishments. An establishment with the sample -average level of wage rigidity is predicted to have a 3.3 percentage point higher layoff rate, a 7.4 percentage point lower quit rate, and a 2.0 percentage point lower hire rate. Estimating a structural model by indirect inference implies that the cost of a nominal wage cut is 33 percent of an average worker's annual compensation. (JEL E24, J23, J31, J63, M51)