Wage Rigidity in Canadian Collective Bargaining Agreements
37 Pages Posted: 13 May 2003
Date Written: February 7, 2003
We examine wage-change distributions in Canadian union contracts for evidence of downward nominal wage rigidity. Its probability increases substantially during low-inflation periods. During such periods, we discern no reduction in the incidence of real wage cuts. However, their magnitude is modest, suggesting that the labour market may not function as smoothly.
Keywords: Nominal, real, wage rigidity
JEL Classification: E31, J31
Suggested Citation: Suggested Citation