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Nominal Wage Rigidity in The Australian Labour Market: Evidence from household Data

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  • Andrew Charlton

    (Oxford University)

Abstract

This paper examines the pervasiveness of nominal rigidities in the Australian labour market. The findings show an absence of wage cuts, suggesting downward stickiness in base wages. However further analysis finds more flexibility in total pay, indicating that firms may use additional pay to circumvent the rigidity of base wages.

Suggested Citation

  • Andrew Charlton, 2003. "Nominal Wage Rigidity in The Australian Labour Market: Evidence from household Data," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(1), pages 25-36, March.
    • Handle: RePEc:ozl:journl:v:6:y:2003:i:1:p:25-36
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    References listed on IDEAS

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    5. Joseph G. Altonji & Paul J. Devereux, 1999. "The Extent and Consequences of Downward Nominal Wage Rigidity," NBER Working Papers 7236, National Bureau of Economic Research, Inc.
    6. Jacqueline Dwyer, 2003. "Nominal Wage Rigidity in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(1), pages 5-24, March.
    7. Bewley, Truman F., 1998. "Why not cut pay?," European Economic Review, Elsevier, vol. 42(3-5), pages 459-490, May.
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    9. Alan S. Blinder & Don H. Choi, 1990. "A Shred of Evidence on Theories of Wage Stickiness," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(4), pages 1003-1015.
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    11. Kahn, Shulamit, 1997. "Evidence of Nominal Wage Stickiness from Microdata," American Economic Review, American Economic Association, vol. 87(5), pages 993-1008, December.
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    Cited by:

    1. Paul Flatau, 2003. "Are Nominal Wages Downwardly Rigid? New Australian Evidence on an Old Quarrel," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(1), pages 1-4, March.
    2. James Bishop & Emma Greenland, 2021. "Is the Phillips Curve Still a Curve? Evidence from the Regions," RBA Research Discussion Papers rdp2021-09, Reserve Bank of Australia.
    3. Barno Blaes, 2008. "Ausmaß und reale Konsequenzen nach unten starrer Nominallöhne," Working Papers 048, Bavarian Graduate Program in Economics (BGPE).

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