IDEAS home Printed from https://ideas.repec.org/p/rdg/emxxdp/em-dp2020-01.html
   My bibliography  Save this paper

Nominal Wage Adjustments and the Composition of Pay: New Evidence from Payroll Data

Author

Listed:
  • Daniel Schaefer

    () (Institut für Volkswirtschaftslehre, Johannes-Kepler-Universität Linz)

  • Carl Singleton

    () (Department of Economics, University of Reading)

Abstract

We use representative employer payroll data from Great Britain and the period 2006-2018 to document novel facts about nominal wage adjustments, focusing on workers who stay in the same firm and job from one year to the next. The richness of these data allows us to analyse separately basic pay and the other components of earnings, such as overtime and incentive pay, while controlling for hours worked. Weekly and hourly basic pay show signs of downward nominal rigidity, but non-basic pay components adjust more commonly. Unusually, these payroll-based data also report the pay rates of hourly-paid employees. A quarter of these workers, who stay in the same job between years, typically see no change in their rate of pay, and very few experience wage cuts. Finally, we exploit the employer-employee link in our data and find some evidence that wage setting is state-dependent rather than time-dependent.

Suggested Citation

  • Daniel Schaefer & Carl Singleton, 2020. "Nominal Wage Adjustments and the Composition of Pay: New Evidence from Payroll Data," Economics & Management Discussion Papers em-dp2020-01, Henley Business School, Reading University.
  • Handle: RePEc:rdg:emxxdp:em-dp2020-01
    as

    Download full text from publisher

    File URL: http://www.reading.ac.uk/web/FILES/economics/emdp202001.pdf
    Download Restriction: no

    More about this item

    Keywords

    downward nominal wage rigidity; payroll records; components of pay; hourly pay;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rdg:emxxdp:em-dp2020-01. 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: (Marie Pearson). General contact details of provider: http://edirc.repec.org/data/bsrdguk.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.