, endogenous productivity and downward wage rigidity (DWR) which challenges these results. The model features a non-vertical long …

This paper studies the recent trends in nominal wage rigidity in a large group of EU countries, using survey data. We … analyse two forms of nominal wage rigidity: downward nominal wage rigidity (DNWR) and the lagged response of wages to shocks …

This paper studies the recent trends in nominal wage rigidity in a large group of EU countries, using survey data. We … analyse two forms of nominal wage rigidity: downward nominal wage rigidity (DNWR) and the lagged response of wages to shocks …

longitudinal data on individuals. Wage rigidity is measured by the elasticity of individual real wages with respect to local …We present empirical evidence of the extent of wage rigidity in the euro area and European countries derived from … unemployment. The results suggest that the elasticity is indeed negative, i.e. that real wages are lower in local labour markets …

long-run level of unemployment and hasten economic recovery after an adverse shock. Following Daly and Hobijn (2014), we re …. However, we also find that the increase in the number of people bound by DNWR following a negative demand shock rises with …The existence of downward nominal wage rigidity (DNWR) has often been used to justify a positive inflation target. It …

Recent studies found evidence for nominal wage rigidity during periods of relatively high nominal GDP growth. It has … valid nominal wage rigidity is largely irrelevant because in a high-growth environment there is little need to cut nominal … obstacle to real wage adjustments. In the absence of downward nominal rigidity, real wages would indeed be quite responsive to …