The incidence of nominal and real wage rigidity: An individual-based sectoral approach

This paper presents estimates based on individual data on downward nominal and real wage rigidities for thirteen sectors in Belgium, Denmark, Spain and Portugal. Our methodology follows the approach recently developed for the International Wage Flexibility Project, whereby resistance to nominal and real wage cuts is measured through departures of observed individual wage-change histograms from an estimated counterfactual wage-change distribution that would have prevailed in the absence of any rigidity. We evaluate the role of worker and firm characteristics in shaping wage rigidities. We also... Mehr ...