Advanced Search
MyIDEAS: Login

The Incidence of Nominal and Real Wage Rigidities in Great Britain: 1978-98

Contents:

Author Info

  • RichardD. Barwell
  • MarkE. Schweitzer
Registered author(s):

    Abstract

    This article analyses the extent of rigidities in wage setting in Great Britain over the 1980s and 1990s. Our estimation strategy follows the generalised Altonji and Devereux (2000) model discussed in the introduction to this Feature, but it includes modifications to include some special features of the British data. Our estimates reveal that real rigidities in wage setting are more prevalent than nominal rigidities in Great Britain, although the incidence of these real wage rigidities has fallen gradually over time. If firms cannot cut real wages in response to negative demand shocks they may resort to laying off workers. Our results support this micro-foundation of the wage-unemployment Phillips curve: workers who are more likely to be protected from wage cuts are also more likely to lose their jobs. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0297.2007.02096.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Royal Economic Society in its journal The Economic Journal.

    Volume (Year): 117 (2007)
    Issue (Month): 524 (November)
    Pages: F553-F569

    as in new window
    Handle: RePEc:ecj:econjl:v:117:y:2007:i:524:p:f553-f569

    Contact details of provider:
    Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
    Phone: +44 1334 462479
    Email:
    Web page: http://www.res.org.uk/
    More information through EDIRC

    Order Information:
    Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Giulio Fella, 2012. "Matching, Wage Rigidities and Efficient Severance Pay," Working Papers 698, Queen Mary, University of London, School of Economics and Finance.
    2. Messina, Julian & Sanz-de-Galdeano, Anna, 2011. "Wage rigidity and disinflation in emerging countries," Policy Research Working Paper Series 5863, The World Bank.
    3. Doris, Aedin & O'Neill, Donal & Sweetman, Olive, 2013. "Wage Flexibility and the Great Recession: The Response of the Irish Labour Market," IZA Discussion Papers 7787, Institute for the Study of Labor (IZA).
    4. Ana María Iregui B. & Ligia Alba Melo B. & María Teresa Ramírez G., . "Are wages rigid in Colombia?: Empirical evidence based on a sample of wages at the firm level," Borradores de Economia 571i, Banco de la Republica de Colombia.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:117:y:2007:i:524:p:f553-f569. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.