scholarly journals Downward Nominal Wage Rigidity in the United States: New Evidence From Worker-Firm Linked Data

2018 ◽  
Author(s):  
André Kurmann ◽  
Erika McEntarfer
Keyword(s):  
United States ◽  
Linked Data ◽  
The United States ◽  
Wage Rigidity ◽  
Nominal Wage ◽  
Nominal Wage Rigidity ◽  
New Evidence

scholarly journals Aggregate Nominal Wage Adjustments: New Evidence from Administrative Payroll Data

2021 ◽  
Vol 111 (2) ◽  
pp. 428-471
Author(s):  
John Grigsby ◽  
Erik Hurst ◽  
Ahu Yildirmaz
Keyword(s):  
United States ◽  
Marginal Cost ◽  
State Dependence ◽  
The United States ◽  
Wage Rigidity ◽  
Nominal Wage ◽  
Wage Change ◽  
Nominal Wage Rigidity ◽  
New Evidence ◽  
New Hire

Using administrative payroll data from the largest US payroll processing company, we measure the extent of nominal wage rigidity in the United States. The data allow us to define a worker’s per-period base contract wage separately from other forms of compensation such as overtime premiums and bonuses. We provide evidence that firms use base wages to cyclically adjust the marginal cost of their workers. Nominal base wage declines are much rarer than previously thought with only 2 percent of job-stayers receiving a nominal base wage cut during a given year. Approximately 35 percent of workers receive no base wage change year over year. We document strong evidence of both time and state dependence in nominal base wage adjustments. In addition, we provide evidence that the flexibility of new hire base wages is similar to that of existing workers. Collectively, our results can be used to discipline models of nominal wage rigidity. (JEL E24, E32, J31, J41)

scholarly journals Downward Nominal Wage Rigidity in the United States During and After the Great Recession

2020 ◽  
Vol 2020 (001r1) ◽  
Author(s):  
◽  
Bruce Fallick ◽  
Daniel Villar ◽  
William L. Wascher ◽  
◽  
...  
Keyword(s):  
United States ◽  
Great Recession ◽  
The United States ◽  
Wage Rigidity ◽  
Nominal Wage ◽  
The Great Recession ◽  
Nominal Wage Rigidity

Lending to the Borrower from Hell

2017 ◽  
Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth
Keyword(s):  
United States ◽  
Sixteenth Century ◽  
Sovereign Debt ◽  
Risk Sharing ◽  
The United States ◽  
Philip Ii ◽  
Loan Contracts ◽  
The Right ◽  
Intelligent Model ◽  
New Evidence

Why do lenders time and again loan money to sovereign borrowers who promptly go bankrupt? When can this type of lending work? As the United States and many European nations struggle with mountains of debt, historical precedents can offer valuable insights. This book looks at one famous case—the debts and defaults of Philip II of Spain. Ruling over one of the largest and most powerful empires in history, King Philip defaulted four times. Yet he never lost access to capital markets and could borrow again within a year or two of each default. Exploring the shrewd reasoning of the lenders who continued to offer money, the book analyzes the lessons from this historical example. Using detailed new evidence collected from sixteenth-century archives, the book examines the incentives and returns of lenders. It provides powerful evidence that in the right situations, lenders not only survive despite defaults—they thrive. It also demonstrates that debt markets cope well, despite massive fluctuations in expenditure and revenue, when lending functions like insurance. The book unearths unique sixteenth-century loan contracts that offered highly effective risk sharing between the king and his lenders, with payment obligations reduced in bad times. A fascinating story of finance and empire, this book offers an intelligent model for keeping economies safe in times of sovereign debt crises and defaults.

The Firm, Wage Indexation, and Nominal Wage Rigidity

2016 ◽  
Author(s):  
James M. Holmes ◽  
John M. Holmes ◽  
Patricia A. Hutton
Keyword(s):  
Wage Rigidity ◽  
Nominal Wage ◽  
Wage Indexation ◽  
Nominal Wage Rigidity

Do National Service Programs Improve Subjective Well-Being in Communities?

2018 ◽  
Vol 49 (3) ◽  
pp. 275-291 ◽  
Author(s):  
Kristopher Velasco ◽  
Pamela Paxton ◽  
Robert W. Ressler ◽  
Inbar Weiss ◽  
Lilla Pivnick
Keyword(s):  
United States ◽  
Well Being ◽  
The United States ◽  
Change Score ◽  
National Service ◽  
Subjective Well Being ◽  
Community Effects ◽  
Service Programs ◽  
Open Question ◽  
New Evidence

Since the creation of Volunteers in Service to America (VISTA) in 1964 and AmeriCorps in 1993, a stated goal of national service programs has been to strengthen the overall health of communities across the United States. But whether national service programs have such community effects remains an open question. Using longitudinal cross-lagged panel and change-score models from 2005 to 2013, this study explores whether communities with national service programs exhibit greater subjective well-being. We use novel measures of subjective well-being derived from tweeted expressions of emotions, engagement, and relationships in 1,347 U.S. counties. Results show that national service programs improve subjective well-being primarily by mitigating threats to well-being and communities that exhibit more engagement are better able to attract national service programs. Although limited in size, these persistent effects are robust to multiple threats to inference and provide important new evidence on how national service improves communities in the United States.

Downward Nominal Rigidity in West German Earnings, 1975-95

2001 ◽  
Vol 2 (4) ◽  
pp. 385-417 ◽  
Author(s):  
Thomas Beissinger ◽  
Christoph Knoppik
Keyword(s):  
Business Cycle ◽  
Analytical Framework ◽  
Wage Rigidity ◽  
Nominal Wage ◽  
Symmetry Approach ◽  
Nominal Rigidity ◽  
Inflation Targets ◽  
Nominal Wage Rigidity ◽  
Time Invariant

Abstract If downward nominal wage rigidity exists, it should affect the distribution of earnings changes. We present a common analytical framework for three distinct and previously unconnected approaches to the analysis of downward nominal rigidity, the skewness±location approach, the symmetry approach and the histogram±location approach. We modify them by dropping the assumption of time-invariant rigidity and apply them to earnings data from the IABB-escha Èftigtenstichprobe (IABS). We find that the distribution of West German log earnings changes is indeed affected by downward nominal rigidity. Our modification of the approaches also allows us to find that the degree of nominal rigidity depends on business cycle conditions, with weaker rigidity in times of rising unemployment. Our findings support the critics of very low inflation targets.

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