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Wage Adjustment (wage + adjustment)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting80%

Selected Abstracts

The Backward,Bending Phillips Curve And The Minimum Unemployment Rate Of Inflation: Wage Adjustment With Opportunistic Firms

THE MANCHESTER SCHOOL, Issue 1 2003
Thomas I. PalleyArticle first published online: 12 FEB 200
This paper presents a theory of the backward,bending Phillips curve. There is aminimum unemployment rate of inflation which offers a policy alternative to the non,accelerating inflation rate of unemployment. Nominal wages are downwardly rigid because workers oppose cuts initiated from within the employment relation. Instead, workers may acceptreal wage adjustments effected by increases in the general price level, a variableoutside individual firms' control. This is why inflation ,greases'labor market adjustment. However, workers resist too rapid a real wage adjustment,and too high an inflation generates wage resistance that cancels the grease effect and increases unemployment. [source]

Nominal Wage Rigidity in Contract Data: A Parametric Approach

ECONOMICA, Issue 280 2003
Louis N. Christofides
Using wage agreements reached in the Canadian unionized sector during 1976,99, a period of high as well as exceptionally low inflation, we consider how histograms of wage adjustment changed as inflation reached the low levels of the 1990s. The histograms and parametric tests suggest that wage adjustment is characterized by downward nominal rigidity and significant spikes at zero. There is some evidence of modest menu-cost effects. We examine whether the rigidity features of wage adjustment are sensitive to indexation provisions, and investigate whether the distinction between short and long contracts is useful. [source]

The Backward,Bending Phillips Curve And The Minimum Unemployment Rate Of Inflation: Wage Adjustment With Opportunistic Firms

THE MANCHESTER SCHOOL, Issue 1 2003
Thomas I. PalleyArticle first published online: 12 FEB 200
This paper presents a theory of the backward,bending Phillips curve. There is aminimum unemployment rate of inflation which offers a policy alternative to the non,accelerating inflation rate of unemployment. Nominal wages are downwardly rigid because workers oppose cuts initiated from within the employment relation. Instead, workers may acceptreal wage adjustments effected by increases in the general price level, a variableoutside individual firms' control. This is why inflation ,greases'labor market adjustment. However, workers resist too rapid a real wage adjustment,and too high an inflation generates wage resistance that cancels the grease effect and increases unemployment. [source]

STATE-LEVEL BASIC WAGES IN AUSTRALIA DURING THE DEPRESSION, 1929,35: INSTITUTIONS AND POLITICS OVER MARKETS

AUSTRALIAN ECONOMIC HISTORY REVIEW, Issue 3 2007
Peter Sheldon
Australia; basic wage; depression; institutions; state tribunal State wage-fixation tribunals developed quite particular patterns of basic wage fixation during the Depression. They declined to follow the Commonwealth Court's 10 per cent wage cut, thereby confining its effect to about half the workforce and creating distinctly different State and Commonwealth basic wage patterns in each capital city. Further, tribunals' uneven patterns of basic wage adjustment to deflation meant that in some states, the real State basic wage increased. Patterns of state institutional behaviour and state politics therefore help explain the stickiness of real average wage levels during the Depression. [source]

The Backward,Bending Phillips Curve And The Minimum Unemployment Rate Of Inflation: Wage Adjustment With Opportunistic Firms

THE MANCHESTER SCHOOL, Issue 1 2003
Thomas I. PalleyArticle first published online: 12 FEB 200
This paper presents a theory of the backward,bending Phillips curve. There is aminimum unemployment rate of inflation which offers a policy alternative to the non,accelerating inflation rate of unemployment. Nominal wages are downwardly rigid because workers oppose cuts initiated from within the employment relation. Instead, workers may acceptreal wage adjustments effected by increases in the general price level, a variableoutside individual firms' control. This is why inflation ,greases'labor market adjustment. However, workers resist too rapid a real wage adjustment,and too high an inflation generates wage resistance that cancels the grease effect and increases unemployment. [source]