scholarly journals Nominal Wage Adjustment, Demand Shortage And Economic Policy

2009 ◽  
Author(s):  
Yoshiyasu Ono ◽  
Junichiro Ishida ◽  
ISER and Economic Research
Keyword(s):  
Economic Policy ◽  
Nominal Wage ◽  
Wage Adjustment

scholarly journals Some Evidence on the Importance of Sticky Wages

2014 ◽  
Vol 6 (1) ◽  
pp. 70-101 ◽  
Author(s):  
Alessandro Barattieri ◽  
Susanto Basu ◽  
Peter Gottschalk
Keyword(s):  
Measurement Error ◽  
Representative Sample ◽  
Nominal Wage ◽  
Seasonal Patterns ◽  
Wage Change ◽  
Present Evidence ◽  
The Us ◽  
Sipp Data ◽  
Wage Adjustment ◽  
Sticky Wages

We present evidence on the frequency of nominal wage adjustment using SIPP data adjusted for measurement error. The SIPP is a representative sample of the US population. Our main results are: (i) The average quarterly probability of a nominal wage change is between 21.1 and 26.6 percent, depending on the assumptions used. (ii) Wage changes are much more likely when workers change jobs. (iii) The frequency of wage adjustment does not display significant seasonal patterns. (iv) The hazard of a nominal wage change first increases and then decreases, with a peak at 12 months. (JEL E24, E32, E52, J31)

scholarly journals Asymmetric wage adjustment and employment in European firms

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Petra Marotzke ◽  
Robert Anderton ◽  
Ana Bairrao ◽  
Clémence Berson ◽  
Peter Tóth
Keyword(s):  
European Countries ◽  
Economic Conditions ◽  
Nominal Wage ◽  
Firm Level ◽  
Level Information ◽  
Negative Effect ◽  
Wage Adjustment ◽  
The Impact

AbstractWe explore the impact of wage adjustment on employment with a focus on the role of downward nominal wage rigidities. We use a harmonised survey dataset, which covers 25 European countries in the period 2010–2013. These data are particularly useful for this paper given the firm-level information on the change in economic conditions and collective pay agreements. Our findings confirm the presence of wage rigidities in Europe: first, collective pay agreements reduce the probability of downward wage adjustment; second, wage responses to demand developments are asymmetric with a weaker downward response. Estimation results show that a wage reduction significantly lowers the probability of a decrease in employment at the firm level when demand falls and thereby point to a negative effect of downward wage rigidities on employment at the firm level.

Model-based sensitivity analysis of the Hungarian economy to macroeconomic shocks and uncertainties

2008 ◽  
Vol 58 (4) ◽  
pp. 367-401
Author(s):  
A. Bíró ◽  
P. Elek ◽  
J. Vincze
Keyword(s):  
Economic Policy ◽  
Exchange Rate ◽  
Hungarian Academy ◽  
Building Blocks ◽  
Economic Agents ◽  
General Government ◽  
Government Deficit ◽  
Wage Adjustment ◽  
Complex Relationships ◽  
Academy Of Sciences

In this paper we analyse the most important mechanisms of the Hungarian economy with the help of a medium-sized quarterly macroeconomic model developed jointly by the Economic Policy Department of the Ministry of Finance and the Institute of Economics of the Hungarian Academy of Sciences. After introducing the building blocks of the model we investigate, within a scenario analysis, the effects of the main factors behind the macroeconomic and budgetary processes. The sources of uncertainty — defined in a broad sense — are categorised into three groups: changes in the external environment (e.g. an adverse external business cycle shock or an exchange rate shock), uncertainties in the estimated behaviour of economic agents (e.g. in the speed of wage adjustment or in the extent of consumption smoothing), and economic policy decisions (such as the increase of public sector wages). Taking into account the complex relationships between the various areas of the economy, we analyse the short and medium term consequences of such shocks and uncertainties on GDP, its components, the general government deficit and the public debt. We also show that the macroeconomic consequences of the uncertainties are not independent of each other: for instance, the effects of an exchange rate shock are influenced by the speed of wage adjustment.

scholarly journals Real and Nominal Wage Adjustment in Open Economies

2006 ◽  
Author(s):  
Anders Forslund ◽  
Nils Gottfries ◽  
Andreas Westermark
Keyword(s):  
Open Economies ◽  
Nominal Wage ◽  
Wage Adjustment

scholarly journals The Negative Mean Output Gap

2019 ◽  
Vol 19 (183) ◽  
Author(s):  
Shekhar Aiyar ◽  
Simon Voigts
Keyword(s):  
Adjustment Costs ◽  
New Keynesian ◽  
Wage Rigidity ◽  
Estimation Methods ◽  
Output Gap ◽  
Nominal Wage ◽  
Systematic Bias ◽  
Keynesian Model ◽  
Wage Adjustment ◽  
Nominal Wage Rigidity

We argue that in an economy with downward nominal wage rigidity, the output gap is negative on average. Because it is more difficult to cut wages than to increase them, firms reduce employment more during downturns than they increase employment during expansions. This is demonstrated in a simple New Keynesian model with asymmetric wage adjustment costs. Using the model's output gap as a benchmark, we further show that common output gap estimation methods exhibit a systematic bias because they assume a zero mean. The bias is especially large in deep recessions when potential output tends to be most severely underestimated.

Market Reforms in Russia: Can the Vicious Circle Be Teared Open?

2004 ◽  
pp. 114-128
Author(s):  
V. Nimushin
Keyword(s):  
Economic Policy ◽  
Comparative Analysis ◽  
Historical Context ◽  
Vicious Circle ◽  
Modern World ◽  
Market Reforms ◽  
Main Task ◽  
Forward Movement ◽  
Socially Responsible ◽  
The Way

In the framework of broad philosophic and historical context the author conducts comparative analysis of the conditions for assimilating liberal values in leading countries of the modern world and in Russia. He defends the idea of inevitable forward movement of Russia on the way of rationalization and cultivation of all aspects of life, but, to his opinion, it will occur not so fast as the "first wave" reformers thought and in other ideological and sociocultural forms than in Europe and America. The author sees the main task of the reformist forces in Russia in consolidation of the society and inplementation of socially responsible economic policy.

Actual Problems of Economic Policy

2003 ◽  
pp. 23-38 ◽  
Author(s):  
M. Ershov
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Foreign Exchange ◽  
World Economy ◽  
Domestic Economy ◽  
The World ◽  
Exchange Policy ◽  
Effective Integration

At present Russia faces the task of great importance - effective integration into the world economy. The success of this process largely depends on the strength of the domestic economy and stable economic growth. To attain such a goal certain changes in economic approaches are required which imply more active, focused and concerted steps in the monetary, fiscal and foreign exchange policy.

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