Nominal Wage Rigidity in Village Labor Markets

被引：65
|
作者：
Kaur, Supreet [1 ]
机构：
[1] Univ Calif Berkeley, Dept Econ, 530 Evans Hall, Berkeley, CA 94720 USA
来源：
AMERICAN ECONOMIC REVIEW | 2019年 / 109卷 / 10期
关键词：
AGRICULTURAL PRODUCTION; INFLATION; INCOME; MACROECONOMICS; PRODUCTIVITY; UNEMPLOYMENT; STICKINESS; MIGRATION; RESPONSES; FAIRNESS;
D O I：
10.1257/aer.20141625
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This paper develops a new approach to test for downward wage rigidity by examining transitory shocks to labor demand (i.e., rainfall) across 600 Indian districts. Nominal wages rise during positive shocks but do not fall during droughts. In addition, transitory positive shocks generate ratcheting: after they have dissipated, wages do not adjust back down. Ratcheting reduces employment by 9 percent, indicating that rigidities distort employment levels. Inflation, which is unaffected by local rainfall, enables downward real wage adjustments-offering causal evidence for its labor market effects. Surveys suggest that individuals believe nominal wage cuts are unfair and lead to effort reductions.
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页码：3585 / 3616
页数：32
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