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Downward Nominal Wage Rigidity in Europe: An Analysis of European Micro Data from the ECHP 1994-2001

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  • Knoppik, Christoph
  • Beissinger, Thomas

Abstract

This paper substantially extends the limited available evidence on existence and extent of downward nominal wage rigidity in the European Union and the Euro Area. For this purpose we develop an econometric multi-country model based on Kahn�s (1997) histogram-location approach and apply it to employee micro data from the European Community Household Panel (ECHP) for twelve of the EU�s current member states. Our estimates for the degree of downward nominal wage rigidity on the national as well as the EU-wide level point to marked downward nominal wage rigidity within the European Union. Dieser Beitrag liefert eine erhebliche Erweiterung der bislang nur spärlich vorhandenen Evidenz zum Ausmaß der Abwärtsnominallohnstarrheit in der Europäischen Union und im Eurogebiet. Zu diesem Zweck wird auf Basis des Histogram-Location-Approach von Kahn (1997) ein ökonometrisches Mehrländermodell entwickelt und auf die Daten des Europäischen Haushaltspanels für zwölf EU-Mitgliedsländer angewandt. Die Schätzergebnisse deuten sowohl auf nationaler als auch auf europäischer Ebene auf ausgeprägte Abwärtsnominallohnstarrheit hin.

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Bibliographic Info

Paper provided by University of Regensburg, Department of Economics in its series University of Regensburg Working Papers in Business, Economics and Management Information Systems with number 402.

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Date of creation: 2005
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Handle: RePEc:bay:rdwiwi:462

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Keywords: Lohnstarrheit ; Europäische Union ; Europäische Union / Währungsunion / Mitgliedsstaaten ; Lohnbildung ; Nominallohn ; Rigidität; Abwärtsnominallohnstarrheit ; Europäisches Haushaltspanel ; ECHP ; Lohnrigidität ; Histogram-Location-Ansatz; Downward Nominal Wage Rigidity ; Wage Stickiness ; European Comunity Household Panel ; European Union ; Euro Area;

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  1. Kuroda, Sachiko & Yamamoto, Isamu, 2005. "Wage Fluctuations in Japan after the Bursting of the Bubble Economy: Downward Nominal Wage Rigidity, Payroll, and the Unemployment Rate," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, Institute for Monetary and Economic Studies, Bank of Japan, vol. 23(2), pages 1-29, May.
  2. Christofides, Louis N. & Nearchou, Paris, 2007. "Real and Nominal Wage Rigidities in Collective Bargaining Agreements," IZA Discussion Papers 2799, Institute for the Study of Labor (IZA).
  3. Knoppik, Christoph & Beissinger, Thomas, 2005. "Downward Nominal Wage Rigidity in Europe: An Analysis of European Micro Data from the ECHP 1994-2001," University of Regensburg Working Papers in Business, Economics and Management Information Systems 402, University of Regensburg, Department of Economics.
  4. Sara G. Castellanos & Rodrigo Garcia-Verdu & David S. Kaplan, 2004. "Nominal Wage Rigidities in Mexico: Evidence from Social Security Records," NBER Working Papers 10383, National Bureau of Economic Research, Inc.
  5. Knoppik, Christoph, 2004. "Downward Nominal Rigidity in US Wage Data from the PSID - An Application of the Kernel-Location Approach," University of Regensburg Working Papers in Business, Economics and Management Information Systems 393, University of Regensburg, Department of Economics.
  6. Orietta DESSY, 2004. "Wage rigidity in Italy," Departmental Working Papers, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano 2004-18, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  7. Francesco Devicienti, 2002. "Downward Nominal Wage Rigidity in Italy: Evidence and Consequences," LABORatorio R. Revelli Working Papers Series, LABORatorio R. Revelli, Centre for Employment Studies 20, LABORatorio R. Revelli, Centre for Employment Studies.
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  23. Francesco Devicienti & Agata Maida & Paolo Sestito, 2003. "Nominal and Real Wage Rigidity: An Assessment Using Italian Microdata," LABORatorio R. Revelli Working Papers Series, LABORatorio R. Revelli, Centre for Employment Studies 33, LABORatorio R. Revelli, Centre for Employment Studies.
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