For more than 80 years, many macroeconomic analyses have been premised on the
assumption that workers' nominal wage rates cannot be cut. Contrary evidence from …

We analyze the heterogeneous employment effects of financial shocks using a rich data set
of job contracts, matched with the universe of firms and their lending banks in one Italian …

In standard production models, wage volatility is far too high, and equity volatility is far too
low. A simple modification–sticky wages because of infrequent resetting together with a …

We show that labor market frictions are first-order for understanding credit markets. Wage
growth and labor share forecast aggregate credit spreads and debt growth as well as or …

Recent microeconomic studies have documented extensive downward nominal wage
rigidity (DNWR) for job stayers in many OECD countries, but critics argue that the effect …

The liberalisation of temporary contracts has led to a sizeable share of jobs covered by
temporary contracts. This article proposes a matching model of unemployment in which …

This article examines real and nominal wage rigidities in West Germany. Using regionally
disaggregated register data for 1975–2001, we estimate the extent of both types of wage …

Wage rigidity–the observation that wages cannot be adjusted downwards–has important
implications for labour markets and macroeconomic performance. Empirical evidence on the …

In several OECD countries employer federations and unions fix skill-specific wage floors for
all workers in an industry. One view of those “explicit” contracts argues that the prevailing …

In this paper, we explore the impact of a firm's workers' replacements on innovation
performance by using rich matched employer–employee panel data for the Veneto region of …