The Welfare Costs of Nominal Wage Contracting

Posted: 6 May 1998

See all articles by Jang-Ok Cho

Jang-Ok Cho

Queen's University

Thomas F. Cooley

New York University - Leonard N. Stern School of Business; National Bureau of Economic Research (NBER)

Louis Phaneuf

Universite du Quebec a Montreal; Centre interuniversitaire sur le risque, les politiques économiques et l'emploi (CIRPÉE)

Date Written: Undated

Abstract

This paper provides quantitative estimates of the welfare costs of nominal wage contracts. We find that the welfare costs of such contracts are fairly small and are generally relatively insensitive to changes in the economic environment. We then study how contract length might respond to changes in the environment.

JEL Classification: J41, E24

Suggested Citation

Cho, Jang-Ok and Cooley, Thomas F. and Phaneuf, Louis, The Welfare Costs of Nominal Wage Contracting (Undated). Simon School of Business Working Paper MP 95-03. Available at SSRN: https://ssrn.com/abstract=3171

Jang-Ok Cho

Queen's University

Kingston, Ontario K7L 3N6 K7L 3N6
Canada

Thomas F. Cooley (Contact Author)

New York University - Leonard N. Stern School of Business ( email )

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National Bureau of Economic Research (NBER)

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Louis Phaneuf

Universite du Quebec a Montreal ( email )

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Montreal, Quebec H3C 3P8
Canada
514-987-6181 (Phone)

Centre interuniversitaire sur le risque, les politiques économiques et l'emploi (CIRPÉE)

Pavillon De Sève
Ste-Foy, Quebec G1K 7P4
Canada

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