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Micro and Macro Level Wage Rigidity: Lessons from Finland

Petri Böckerman et al.

Finnish Economic Papers2010article
ABDC B
Weight
0.49

Abstract

The paper explores wage flexibility in Finland. The study covers the private sector workers by using three data sets from the payroll records of employers ’ associa-tions. The data span the period 1985–2001. The results reveal that there has been macroeconomic flexibility in the labour market. Average real wages declined during the depression of the early 1990s and a large proportion of workers experienced real wage cuts. However, the evidence based on individual-level wage change dis-tributions shows that real wages, especially, are rigid downwards. In particular, during the late 1990s, individual-level wage changes regained the high levels of real rigidity that prevailed in the 1980s, despite the continued high (but declining) level of unemployment. (JEL J30, J33)

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Cite this paper

@article{petri2010,
  title        = {{Micro and Macro Level Wage Rigidity: Lessons from Finland}},
  author       = {Petri Böckerman et al.},
  journal      = {Finnish Economic Papers},
  year         = {2010},
}

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Micro and Macro Level Wage Rigidity: Lessons from Finland

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Evidence weight

0.49

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.59 × 0.4 = 0.24
M · momentum0.20 × 0.15 = 0.03
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.