This paper studies wage inflexibility in Britain. It examines various kinds of microeconomic data on move ments in real pay and uses aggregate data to estimate real consumptio n earnings and real product wage rate equations. The paper's first ma in point is that the unemployment elasticity of...

Two well-established findings are apparent in the analyses of individual wage determination: cross-section wage equations can account for less than half of the variance in earnings and there are large and persistent inter-industry wage differentials. We explore these two empirical regularities...

The recent failure to predict the strong growth in consumer spending and decline in the savings ratio in the United Kingdom has prompted a number of economic forecasters to reassess the basis of their consumer expenditure relationships. This paper assesses the failure of the traditional...