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Was There a Golden Age of Flexible Wages? Evidence from Ohio Manufacturing, 1892–1910

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  • Sundstrom, William A.

Abstract

Several macroeconomic studies have found evidence of diminishing cyclical wage flexibility in the United States since the turn of the century. But the importance of wage reductions during downturns must be questioned even for the era of allegedly flexible wages. This article shows that during the severe contractions of 1893 and 1908 only a small minority of Ohio manufacturing workers experienced cuts in their wage rates.The apparent downward flexibility of average earnings in these data was largely the consequence of changes in the occupational composition of the employed work force rather than pay cuts for individual workers.

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  • Sundstrom, William A., 1990. "Was There a Golden Age of Flexible Wages? Evidence from Ohio Manufacturing, 1892–1910," The Journal of Economic History, Cambridge University Press, vol. 50(2), pages 309-320, June.
    • Handle: RePEc:cup:jechis:v:50:y:1990:i:02:p:309-320_03
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    Cited by:

    1. Gary Solon & Warren Whatley & Ann Huff Stevens, 1997. "Wage Changes and Intrafirm Job Mobility over the Business Cycle: Two Case Studies," ILR Review, Cornell University, ILR School, vol. 50(3), pages 402-415, April.
    2. Charles W. Calomiris & Christopher Hanes, 1994. "Historical Macroeconomics and American Macroeconomic History," NBER Working Papers 4935, National Bureau of Economic Research, Inc.
    3. Seltzer, Andrew, 2010. "Did firms cut nominal wages in a deflationary environment?: Micro-level evidence from the late 19th and early 20th century banking industry," Explorations in Economic History, Elsevier, vol. 47(1), pages 112-125, January.
    4. Domenech, Jordi, 2005. "Labour market adjustment to economic downturns in the Catalan textile industry, 1880-1910: did employers breach implicit contracts?," Economic History Working Papers 22333, London School of Economics and Political Science, Department of Economic History.
    5. Card, David & Olson, Craig A, 1995. "Bargaining Power, Strike Durations, and Wage Outcomes: An Analysis of Strikes in the 1880s," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 32-61, January.

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