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The Reasons for Wage Rigidity: Evidence from a Survey of Firms
Abstract
A survey of 184 firms was conducted to investigate the reasons for wage rigidity. The strongest support was found for explanations based on adverse selection in quits and on the effect of wages on effort. In addition, survey respondents indicated that reducing turnover is an important explanation of wage rigidity for white-collar workers, and that implicit contracts are an important explanation for other workers. Respondents also believed that effort responds more strongly to wage decreases than to wage increases and that wage decreases have a greater impact on the effort of low-skilled workers than of high-skilled workers.
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Citations
Cited by
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Falk, A., Fehr, E., & Fischbacher, U. (2003) · Economic Inquiry · doi:10.1093/ei/41.1.20 · Cited by 728
The Transitional Costs of Sectoral Reallocation: Evidence From the Clean Air Act and the Workforce*
Walker, W. R. (2013) · The Quarterly Journal of Economics · doi:10.1093/qje/qjt022 · Cited by 506
Reciprocity and incentive pay in the workplace
Dur, R., Non, A., & Roelfsema, H. (2010) · Journal of Economic Psychology · doi:10.1016/j.joep.2010.05.001 · Cited by 50
Metadata
- Authors
- Campbell, C. M., & Kamlani, K. S.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1997-08-01
- Volume
- 112
- Issue
- 3
- Pages
- 759-789
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W2098071721
- Cited by
- 500
- References
- 0
- FWCI
- 27.20
- Type
- journal article
- Language
- en
- Open access
- closed
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- Campbell, C. M., & Kamlani, K. S. (1997). The Reasons for Wage Rigidity: Evidence from a Survey of Firms. The Quarterly Journal of Economics. https://doi.org/10.1162/003355397555343
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
