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    Sticky wages: Evidence from quarterly microeconomic data

    Access Status
    Fulltext not available
    Authors
    Le Bihan, Herve
    Montornès, J.
    Heckel, T.
    Date
    2012
    Type
    Journal Article
    
    Metadata
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    Citation
    Le Bihan, H. and Montornès, J. and Heckel, T. 2012. Sticky wages: Evidence from quarterly microeconomic data. American Economic Journal: Macroeconomics. 4 (3): pp. 01-32.
    Source Title
    American Economic Journal: Macroeconomics
    DOI
    10.1257/mac.4.3.1
    ISSN
    1945-7707
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/55841
    Collection
    • Curtin Research Publications
    Abstract

    Using an original micro-dataset from France, we investigate nominal wage stickiness. Nominal wage changes are found to occur at a quarterly frequency of around 38 percent over our sample period, and to be to a large extent staggered across establishments, and very synchronized within establishments. We carry out an econometric analysis of wage changes based on a two-threshold sample selection model. Our results are that the timing of wage adjustments is time-dependent as opposed to state-dependent, there is evidence of predetermination in wage changes, and both backward and forwardlooking behavior is relevant in wage setting.

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