Wage Rigidity in Canadian Collective Bargaining Agreements

37 Pages Posted: 13 May 2003

See all articles by Louis N. Christofides

Louis N. Christofides

University of Cyprus - Department of Economics; University of Guelph; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Thanasis Stengos

University of Guelph - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 7, 2003

Abstract

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

Christofides, Louis N. and Stengos, Thanasis, Wage Rigidity in Canadian Collective Bargaining Agreements (February 7, 2003). Available at SSRN: https://ssrn.com/abstract=387781 or http://dx.doi.org/10.2139/ssrn.387781

Louis N. Christofides (Contact Author)

University of Cyprus - Department of Economics ( email )

75 Kallipoleos Street
P.O. Box 20537
1678 Nicosia
Cyprus
357 22 892448 (Phone)
357 22 892432 (Fax)

University of Guelph ( email )

Guelph, Ontario
Canada
001-519-763-8497 (Phone)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Thanasis Stengos

University of Guelph - Department of Economics ( email )

50 Stone Road East
Guelph, Ontario N1G 2W1
Canada

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