Asymmetries and Rigidities in Wage Adjustments by Firms.

A-Tier
Journal: Review of Economics and Statistics
Year: 1993
Volume: 75
Issue: 3
Pages: 397-408

Authors (2)

Holzer, Harry J (Brookings Institution) Montgomery, Edward B (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The authors use micro data from a survey of firms to test for labor-market rigidities and asymmetries in response to demand shifts. They analyze wage and employment adjustments to positive and negative shifts as measured by real sales growth. The results show that wage adjustments are fairly small compared with employment adjustments. They are also asymmetric, with significant adjustments in response to positive shifts but not negative shifts. These asymmetries are no more pronounced in large firms, manufacturing, heavily-union, or highly-skilled industries than in other firms or industries. In contrast, employment adjustments show no consistent pattern of asymmetry. Copyright 1993 by MIT Press.

Technical Details

RePEc Handle
repec:tpr:restat:v:75:y:1993:i:3:p:397-408
Journal Field
General
Author Count
2
Added to Database
2026-02-02