000			01189nam a22001457a 4500
999			_c525521 _d525521
008			240319b ||||| |||| 00| 0 eng d
100			_aEhrlich, Gabriel and Montes, Joshua _950306
245			_aWage rigidity and employment outcomes: Evidence from administrative data
260			_aAmerican Economic Journal: Macroeconomics
300			_a16(1), Jan, 2024: p.147-206
520			_aThis paper examines the relationship between downward nominal wage rigidity and employment outcomes using linked employer-employee data. Wage rigidity prevents 27.1 percent of counterfactual wage cuts, with a standard deviation of 19.2 percent across establishments. An establishment with the sample-average level of wage rigidity is predicted to have a 3.3 percentage point higher layoff rate, a 7.4 percentage point lower quit rate, and a 2.0 percentage point lower hire rate. Estimating a structural model by indirect inference implies that the cost of a nominal wage cut is 33 percent of an average worker's annual compensation.- Reproduced https://www.aeaweb.org/articles?id=10.1257/mac.20200125
773			_aAmerican Economic Journal: Macroeconomics
906			_aWAGES
942			_cAR