Microeconomic Evidence of Nominal Wage Rigidity in Chile
AbstractThis paper presents micro evidence on the degree of downward nominal wage rigidity in Chile and also explores its consequences in terms of employment. The data used corresponds to a new panel based on 440 thousand wage histories for the period 2001.12-2007.12. The results indicate a low degree of wage flexibility, the estimated length of wage adjustment for the whole economy being around nine quarters. In terms of the determinants of wage rigidity, the degree of flexibility depends negatively on the size of the firm, the percentage of female workers, the age of workers and white-collar participation at firm level. The econometric estimations indicate that the direct consequence of wage rigidity is a higher fluctuation of employment through the business cycle.
Download InfoIf 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.
Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 496.
Date of creation: Oct 2008
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Franz, Wolfgang & Pfeiffer, Friedhelm, 2006.
"Reasons for Wage Rigidity in Germany,"
IZA Discussion Papers
2017, Institute for the Study of Labor (IZA).
- David Card & Dean Hyslop, 1996.
"Does Inflation "Grease the Wheels of the Labor Market"?,"
NBER Working Papers
5538, National Bureau of Economic Research, Inc.
- David Card & Dean Hyslop, 1997. "Does Inflation “Grease the Wheels of the Labor Market”?," NBER Chapters, in: Reducing Inflation: Motivation and Strategy, pages 71-122 National Bureau of Economic Research, Inc.
- David Card & Dean Hyslop, 1995. "Does Inflation 'Grease the Wheels of the Labor Market'?," Working Papers 735, Princeton University, Department of Economics, Industrial Relations Section..
- BAI, Jushan & PERRON, Pierre, 1998.
"Computation and Analysis of Multiple Structural-Change Models,"
Cahiers de recherche
9807, Universite de Montreal, Departement de sciences economiques.
- Jushan Bai & Pierre Perron, 2003. "Computation and analysis of multiple structural change models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(1), pages 1-22.
- Blinder, Alan S & Choi, Don H, 1990.
"A Shred of Evidence on Theories of Wage Stickiness,"
The Quarterly Journal of Economics,
MIT Press, vol. 105(4), pages 1003-15, November.
- Alan S. Blinder & Don H. Choi, 1989. "A Shred of Evidence on Theories of Wage Stickiness," NBER Working Papers 3105, National Bureau of Economic Research, Inc.
- Philip Du Caju & Catherine Fuss & Ladislav Wintr, 2007.
"Downward wage rigidity for different workers and firms : an evaluation for Belgium using the IWFP procedure,"
Working Paper Research
124, National Bank of Belgium.
- Du Caju, Philip & Fuss, Catherine & Wintr, Ladislav, 2007. "Downward wage rigidity for different workers and firms: an evaluation for Belgium using the IWFP procedure," Working Paper Series 0840, European Central Bank.
- Joseph G. Altonji & Paul J. Devereux, 1999. "The Extent and Consequences of Downward Nominal Wage Rigidity," NBER Working Papers 7236, National Bureau of Economic Research, Inc.
- McLaughlin, Kenneth J., 1994. "Rigid wages?," Journal of Monetary Economics, Elsevier, vol. 34(3), pages 383-414, December.
- Ana María Iregui & Ligia Alba Melo & María Teresa Ramírez, 2009.
"Formación e incrementos de salarios en Colombia: Un estudio microeconómico a partir de una encuesta a nivel de firma,"
BORRADORES DE ECONOMIA
006286, BANCO DE LA REPÚBLICA.
- Ana María Iregui & Ligia Alba Melo & María Teresa Ramírez, . "Formación e incrementos de salarios en Colombia: Un estudio microeconómico a partir de una encuesta a nivel de firma," Borradores de Economia 582, Banco de la Republica de Colombia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda).
If references are entirely missing, you can add them using this form.