000			01421nam a22001457a 4500
999			_c517949 _d517949
008			210806b ||||| |||| 00| 0 eng d
100			_aGrigsby, J. Hurst, E. and Yildirmaz, A. _928347
245			_aAggregate nominal wage adjustments: New evidence from administrative payroll data
260			_aThe American Economic Review
300			_a3(2), Feb, 2021: p.428-471
520			_aUsing administrative payroll data from the largest US payroll processing company, we measure the extent of nominal wage rigidity in the United States. The data allow us to define a worker's per-period base contract wage separately from other forms of compensation such as overtime premiums and bonuses. We provide evidence that firms use base wages to cyclically adjust the marginal cost of their workers. Nominal base wage declines are much rarer than previously thought with only 2 percent of job-stayers receiving a nominal base wage cut during a given year. Approximately 35 percent of workers receive no base wage change year over year. We document strong evidence of both time and state dependence in nominal base wage adjustments. In addition, we provide evidence that the flexibility of new hire base wages is similar to that of existing workers. Collectively, our results can be used to discipline models of nominal wage rigidity. – Reproduced
773			_aThe American Economic Review
906			_aWAGES
942			_cAR