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Downward nominal wage rigidity in Poland

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Author Info
Brzoza-Brzezina, Michal
Socha, Jacek

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Abstract

We use data on enterprise level from a survey of medium sized and big companies to test for downward nominal wage rigidity in Poland. We find relatively weak support for downward nominal wage rigidity when average total compensation in the enterprise is taken into account. However, since this result may be affected by job rotation, we propose a method for eliminating its impact and find that downward wage rigidity becomes higher. Moreover, disaggregating the data reveals strong differences between sectors, with no rigidity in highly competitive branches and significant rigidities in monopolized or state-owned sectors. Still, the amount of downward nominal wage rigidity seems lower than in other countries, although, due to differences in data sets, robust comparisons are not possible.

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File URL: http://mpra.ub.uni-muenchen.de/843/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 843.

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Date of creation: May 2006
Date of revision: Nov 2006
Handle: RePEc:pra:mprapa:843

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Related research
Keywords: Downward nominal wage rigidity Poland inflation

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Find related papers by JEL classification:
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution

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  1. Philip Vermeulen, 2006. "Employment stickiness in small manufacturing firms," Computing in Economics and Finance 2006 144, Society for Computational Economics.
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  6. Holden, Steinar & Wulfsberg, Fredrik, 2004. "Downward Nominal Wage Rigidity in Europe," Memorandum 08/2004, Oslo University, Department of Economics. [Downloadable!]
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  7. Ernst Fehr & Lorenz Goette, 2000. "Robustness and Real Consequences of Nominal Wage Rigidity," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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  8. Kahn, Shulamit, 1997. "Evidence of Nominal Wage Stickiness from Microdata," American Economic Review, American Economic Association, vol. 87(5), pages 993-1008, December. [Downloadable!] (restricted)
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  10. Klaus Adam & Roberto M. Billi, 2004. "Optimal monetary policy under commitment with a zero bound on nominal interest rates," Working Paper Series 377, European Central Bank. [Downloadable!]
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  11. Adam, Klaus & Billi, Roberto M, 2004. "Optimal Monetary Policy Under Discretion with a Zero Bound on Nominal Interest Rates," CEPR Discussion Papers 4585, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  12. David Lebow & Raven Saks & Beth Anne Wilson, 2003. "Downward Nominal Wage Rigidity: Evidence from the Employment Cost Index," Advances in Macroeconomics, Berkeley Electronic Press, vol. 3(1), pages 1117-1117. [Downloadable!] (restricted)
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  14. Jacqueline Dwyer & Kenneth Leong, 2000. "Nominal Wage Rigidity in Australia," RBA Research Discussion Papers rdp2000-08, Reserve Bank of Australia. [Downloadable!]
  15. Jakub Borowski & Michal Brzoza-Brzezina, 2004. "Designing Poland's Macroeconomic Strategy on the Way to the Euro Area," EUI-RSCAS Working Papers 10, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS). [Downloadable!]
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  16. Michael W. Elsby, 2006. "Evaluating the Economic Significance of Downward Nominal Wage Rigidity," NBER Working Papers 12611, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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