Downward Wage Regidity for Different Workers and Firms
This paper evaluates the extent of downward nominal and real wage rigidity for differentcategories of workers and firms using the methodology developed by the International WageFlexibility Project (IWFP). The analysis is based on an administrative data set on individualearnings, covering one-third of employees of the private sector in Belgium over the period1990-2002. Our results show that Belgium is characterised by strong real wage rigidity and verylow nominal wage rigidity, consistent with the typical wage formation system of full indexation.Real rigidity is stronger for white-collar workers than for blue-collar workers. Real rigiditydecreases with age and wage level. Wage rigidity appears to be lower in firms experiencingdownturns. Finally, smaller firms and firms with lower job quit rates appear to have more rigidwages. Our results are in line with standard labour market theories and are robust to alternativemeasures of wage rigidity.
When requesting a correction, please mention this item's handle: RePEc:bxr:bxrceb:2013/130010. 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: (Benoit Pauwels)
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.