Downward Nominal Wage Rigidity in the OECD (2008)
Holden, Steinar, Wulfsberg, Fredrik
Recent microeconomic studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries, but critics argue that the effect might be undone by compositional...
Downward Nominal Wage Rigidity in the OECD (2008)
Holden, Steinar, Wulfsberg, Fredrik
Recent microeconomic studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries, but critics argue that the effect might be undone by compositional...
Downward Nominal Wage Rigidity in the OECD (2008)
Holden, Steinar, Wulfsberg, Fredrik
Recent microeconomic studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries, but critics argue that the effect might be undone by compositional...
Downward Nominal Wage Rigidity in the OECD (2008)
Holden, Steinar, Wulfsberg, Fredrik
Recent microeconomic studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries, but critics argue that the effect might be undone by compositional...
Monetary policy and nominal rigidities under low inflation (2001)
In most European countries, nominal wages are given in collective agreements or individual employment contracts, and the employer cannot unilaterally cut wages, even after the expiration of a...
Does price stability exacerbate labour market rigidities in the EMU? (2001)
How will the commitment to price stability affect labour market rigidities in the European Monetary Union? I explore a model where firms choose between fixed wage contracts (where the employer cannot...
A note on inflation persistence (2001)
Holden, Steinar, Driscoll, John C.
In an important paper, Fuhrer and Moore (1995) showed that Taylor (1980)s staggered wage setting model does not exhibit persistence in inflation; they proposed a simple modification, in which...
Business Cycles and Fiscal Policy in an Open Economy
Torben M. Andersen, Steinar Holden
The role of demand management policy is considered in a two-sector open economy model with price-taking firms and imperfect competition in the labour market. Demand management policies are shown to...
Inflation persistence and relative contracting
John C. Driscoll, Steinar Holden
Macroeconomists have for some time been aware that the New Keynesian Phillips curve, though highly popular in the literature, cannot explain the persistence observed in actual inflation. We argue...
Wage formation under low inflation
This paper reviews the literature on the effects of low steady-state inflation on wage formation, focusing on four different effects. First, under low inflation, downward nominal wage rigidity (DNWR)...
'Large' vs. 'Small' Players: A Closer Look at the Dynamics of Speculative Attacks
Bjönnes, Geir H., Holden, Steinar, Rime, Dagfinn, Solheim, Haakon O.Aa.
What is the role of "large players" like hedge funds and other highly leveraged institutions in speculative attacks? In recent theoretical work, large players may induce an attack by an early move,...
Downward Nominal Wage Rigidity in Europe
Steinar Holden, Fredrik Wulfsberg
This paper explores the existence of downward nominal wage rigidity (DNWR) in the industry sectors of 14 European countries, over the period 1973–1999, using a data set of hourly nominal wages at...
Wage Formation under Low Inflation
This paper reviews the literature on the effects of low steady-state inflation on wage formation, focusing on four different effects. First, under low inflation, downward nominal wage rigidity (DNWR)...
Contract Adjustment under Uncertainty
Helge Holden, Lars Holden, Steinar Holden
Consider a contract over trade in continuous time between two players, according to which one player makes a payment to the other, in exchange for an exogenous service. At each point in time, either...
William T. Dickens, Lorenz Goette, Erica L. Groshen, Steinar Holden, Julian Messina, Mark E. Schweitzer, ...
Inflation can “grease” the wheels of economic adjustment in the labor market by relieving the constraint imposed by downward nominal wage rigidity, but not if there is also substantial downward...
Fairness and Inflation Persistence
John C. Driscoll, Steinar Holden
We argue that peoples' concern for fairness may explain an unsolved puzzle in macroeconomics: the persistence of inflation. We extend a 1990 wage-contracting model of Bhaskar in which workers'...
Monetary Policy and Nominal Rigidities under Low Inflation
In most European countries, money wages are given in collective agreements or individual employment contracts, and the employer cannot unilaterally cut wages, even after the expiration of a...
How wages change : micro evidence from the International Wage Flexibility Project
William T. Dickens, Lorenz Goette, Erica L. Groshen, Steinar Holden, Julian Messina, Mark E. Schweitzer, ...
How do the complex institutions involved in wage setting affect wage changes? The International Wage Flexibility Project provides new microeconomic evidence on how wages change for continuing...
How wages change: micro evidence from the international wage flexibility project
William T. Dickens, Lorenz Goette, Erica L. Groshen, Steinar Holden, Julian Messina, Mark E. Schweitzer, ...
How do the complex institutions involved in wage setting affect wage changes? The International Wage Flexibility Project provides new microeconomic evidence on how wages change for continuing...
Downward nominal wage rigidity in the OECD
Steinar Holden, Fredrik Wulfsberg
Recent micro studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries, but the effect on aggregate variables remains disputed. Using data for...
Wage Drift and the Relevance of Centralised Wage Setting.
The system of wage setting in the Nordic countries is often regarded as highly centralised, contributing to considerable real wage flexibility. This view has been questioned, as sizeable wage drift...
Coordination, fair treatment and inflation persistence
John C. Driscoll, Steinar Holden
Most wage-contracting models with rational expectations fail to replicate the persistence in inflation observed in the data. We argue that coordination problems and multiple equilibria are the keys...
Ratification Requirement and Bargaining Power.
When a large group of people is affected by a bargaining outcome, practical reasons often require that the group be represented by an agent in the bargaining. This paper addresses the issue of how...
Downward Nominal Wage Rigidity in Europe
Steinar Holden, Fredrik Wulfsberg
This paper explores the existence of downward nominal wage rigidity (DNWR) in the industry sectors of 14 European countries, over the period 1973–1999, using a data set of hourly nominal wages at...
The Costs of Price Stability: Downward Nominal Wage Rigidity in Europe
In most European countries, the prevailing terms of employment, including the nominal wage, can be changed only by mutual consent. This legal feature gives workers a strategic advantage in wage...
Wage-setting under Different Monetary Regimes
In an economy with large wage-setters (like industry unions), the monetary regime affects the trade-off between consumer real wages and employment and profits faced by the wage-setters. This paper...
Wage Drift and Bargaining: Evidence from Norway.
Empirical equations, based on a theoretical bargaining model, are estimated on data for wage drift in six industries and in the aggregate manufacturing sector in Norway. It is shown that the central...
Measuring Structural Unemployment: NAWRU Estimates in the Nordic Countries.
Holden, Steinar, Nymoen, Ragnar
The non-accelerating wage rate of unemployment (NAWRU indicator), used by the OECD as a measure of structural unemployment, has risen for the four Nordic countries Denmark, Finland, Norway and...
The Credibility of a Fixed Exchange Rate: How Reputation Is Gained or Lost.
Holden, Steinar, Vikoren, Birger
The authors examine the interest rate differential between each of the four largest Nordic countries and the countries of their foreign currency baskets on monthly data for the period 1978/79-92. The...
Interest Rates in the Nordic Countries: Evidence Based on Devaluation Expectations.
Holden, Steinar, Vikoren, Birger
Over the period 1979-92, investments in Danish and Norwegian kroner in the Euromarket have had an annual excess return of about 2 and 1.1 percent, compared to investments in the Euromarket in foreign...
Does Price Stability Exacerbate Labour Market Rigidities in the EMU?
Nominal wage ridigidity, inflation, employment contracts, training, EMU,
How Wages Change: Micro Evidence from the International Wage Flexibility Project
William T. Dickens, Lorenz Goette, Erica L. Groshen, Steinar Holden, Julian Messina, Mark E. Schweitzer, ...
Workers' wages are not set in a spot market. Instead, the wages of most workers—at least those who do not switch jobs—typically change only annually and are mediated by a complex set of...
Downward Nominal Wage Rigidity in the OECD
Steinar Holden, Fredrik Wulfsberg
Recent micro studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries, but the effect on aggregate variables remains disputed. Using data for...
Are Real Wages Rigid Downwards?
Steinar Holden, Fredrik Wulfsberg
This paper explores the existence of downward real wage rigidity (DRWR) in 19 OECD countries, over the period 1973–1999, using data for hourly nominal earnings at industry level. Based on a...
Wage Differentiation via Subsidised General Training
We provide a new explanation for why firms pay for general training in a competitive labor market. If firms are unable to tailor individual wages to ability, for informational or institutional...
Wage Setting Under Different Monetary Regimes
In an economy with large wage setters (like industry unions), the monetary regime affects the trade-off between consumer real wages and employment and profits faced by the wage setters. This paper...
How strong is the case for downward real wage rigidity?
Steinar Holden, Fredrik Wulfsberg
This paper explores the existence of downward real wage rigidity (DRWR) in 19 OECD countries, over the period 1973-1999, using data for hourly nominal earnings at the industry level. Based on a...
Are real wages rigid downwards?
Steinar Holden, Fredrik Wulfsberg
This paper explores the existence of downward real wage rigidity (drwr) in 19 OECD countries, over the period 1973–1999, using data for hourly nominal earnings at industry level. Based on a...
How wages change - micro evidence from the International Wage Flexibility Project
William T. Dickens, Lorenz Götte, Erica L. Groshen, Steinar Holden, Julián Messina, Mark E. Schweitzer, ...
How do the complex institutions involved in wage setting affect wage changes? The International Wage Flexibility Project provides new microeconomic evidence on how wages change for continuing...
Monetary Regimes and the Co-Ordination of Wage Setting
International comparisons show that countries with co-ordinated wage setting generally have lower unemployment than countries with less co-ordinated wage setting. This paper argues that the monetary...
How Wages Change: Micro Evidence from the International Wage Flexibility Project
William T. Dickens, Lorenz Goette, Erica L. Groshen, Steinar Holden, Julián Messina, Mark E. Schweitzer, ...
How do the complex institutions involved in wage setting affect wage changes? The International Wage Flexibility Project provides new microeconomic evidence on how wages change for continuing...
How wages change: micro evidence from the International Wage Flexibility Project
William T. Dickens, Lorenz Goette, Erica L. Groshen, Steinar Holden, Julian Messina, Mark E. Schweitzer, ...
How do the complex institutions involved in wage setting affect wage changes? The International Wage Flexibility Project provides new microeconomic evidence on how wages change for continuing...
Renegotiation and the Efficiency of Investments
In a long-term relationship between two parties, one party's threat of a unilateral violation of an initial contract may induce a renegotiation of the contract. As a renegotiation may result in one...
Sticky Consumption and Rigid Wages
Ellingsen, Tore, Holden, Steinar
The paper suggests a channel through which past expectations affect current wage aspirations, leading to real wage rigidity. Expectations have a long run impact on the composition of consumption,...
Indebtedness and Unemployment: A Durable Relationship
Ellingsen, Tore, Holden, Steinar
Within a simple formal model, we show that there is a link between workers' consumption patterns and their preferred real wage. A large budget share of illiquid durable consumption goods (such as...
The Public Budget Balance - Fiscal Indicators and Cyclical Sensitivity in the Nordic Countries
Braconier, Henrik, Holden, Steinar
This paper analyzes the relationship between the budget balance and the cyclical situation of the economy. There are two main purposes. In the first analysis, we develop a method for economic policy,...
Coordination, Fair Treatment and Inflation Persistence
Holden, Steinar, Driscoll, John C.
Most wage-contracting models with rational expectations fail to replicate the persistence in inflation observed in the data. We argue that coordination problems and multiple equilibria are the keys...
Wage Differentiation via Subsidised General Training
We provide a new explanation for why firms pay for general training in a competitive labor market. If firms are unable to tailor individual wages to ability, for informational or institutional...
Downward Nominal Wage Rigidity in Europe
Holden, Steinar, Wulfsberg, Fredrik
This paper explores the existence of downward nominal wage rigidity (DNWR) in the industry sectors of 14 European countries, over the period 1973–1999, using a data set of hourly nominal wages at...
Wage formation under low inflation
This paper reviews the literature on the effects of low steady-state inflation on wage formation, focusing on four different effects. First, under low inflation, downward nominal wage rigidity (DNWR)...
Holden, Helge, Holden, Lars, Holden, Steinar
Consider a contract between two players, describing the payment an agent obtains from the principal, in exchange for a good or service supplied. At each point in time, either player may unilaterally...
Downward Nominal Wage Rigidity in the OECD
Holden, Steinar, Wulfsberg, Fredrik
This paper explores the existence of downward nominal wage rigidity (DNWR) in 19 OECD countries, over the period 1973–1999, using data for hourly nominal wages at industry level. Based on a novel...
“Large” vs. “small” players: A closer look at the dynamics of speculative attacks
Geir H. Bjønnes, Steinar Holden, Dagfinn Rime
What is the role of “large players” like hedge funds and other highly leveraged institutions in speculative attacks? In recent theoretical work, large players may induce an attack by an early...
Wage Bargaining, Holdout, and Inflation.
In many countries, it is customary that production continues under the terms of the old contract during wage negotiations (holdout), unless a work stoppage is initiated. This paper analyzes a model...
Wage Moderation and Union Structure.
Holden, Steinar, Raaum, Oddbjorn
Models with a single central trade union representing the whole labor market are often taken to illustrate the wage-setting process in the Scandinavian countries. This paper argues that the...
Wage Differentiation via Subsidised General Training
We provide a new explanation for why firms pay for general training in a competitive labor market. If firms for informational or institutional reasons are unable to tailor wages according to ability,...
Downward Nominal Wage Rigidity in the OECD
Steinar Holden, Fredrik Wulfsberg
Recent microeconomic studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries, but critics argue that the effect might be undone by compositional...
The Unemployment Problem - A Norwegian Perspective
This paper lays out a simple open economy macromodel based on the recent literature on imperfect competition and equilibrium unemployment. It is shown that the NAIRU is not a clearcut concept in the...
A Note on Inflation Persistence
Steinar Holden, John C. Driscoll
Macroeconomists have for some time been aware that the New Keynesian Phillips curve, though highly popular in the literature, cannot explain the persistence observed in actual inflation. We argue...
The Costs of Price Stability - Downward Nominal Wage Rigidity in Europe
In most European countries, the prevailing terms of employment, including the nominal wage, can only be changed by mutual consent. I show that this feature implies that workers have a strategic...
Coordination, Fair Treatment and Inflation Persistence
John C. Driscoll, Steinar Holden
Most wage-contracting models with rational expectations fail to replicate the persistence in inflation observed in the data. We argue that coordination problems and multiple equilibria are the keys...
How Wages Change: Micro Evidence from the International Wage Flexibility Project
William Dickens, Lorenz Goette, Erica L. Groshen, Steinar Holden, Julian Messina, Mark Schweitzer, ...
How do the complex institutions involved in wage setting affect wage changes? The International Wage Flexibility Project provides new microeconomic evidence on how wages change for continuing...