Daly, Mary; Hobijn, Bart; Lucking, Brian - In: FRBSF Economic Letter (2012)
downward nominal wage rigidities, that is, the tendency of employers to avoid cutting the dollar value of wages. This … phenomenon means that, in nominal terms, wages tend not to adjust downward when economic conditions are poor. With inflation … relatively low in recent years, these rigidities have limited reductions in the real wages of a large fraction of U.S. workers. …