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Archive / Seminari IdEP / IdEP_Seminar_28.09.2021

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	Do sticky wages matter? New evidence from matched firm-survey and register data

Martedì

28.09

Room SI008 (black building), Università della Svizzera italiana, Campus Lugano

12:30


	Daniel Kaufmann Assistant Professor at the University of Neuchâtel and Research Fellow at the KOF Swiss Economic Institute, ETH Zurich

This paper provides novel evidence on downward nominal wage
rigidities and their allocative effects in Switzerland. We match individual
wages from a bi-annual firm survey with information on annual income
and employment from social security register data. We relevant
downward nominal wage rigidities in the base wage, which accounts for
more than 90% of employment income. We then identify the allocative
effects of downward nominal wage rigidities on income and
employment after an unexpected 1% decline of the consumer price
level. Base wage rigidities cause a decline of aggregate income (-
0.39%) and employment income (-0.97%), as well as an increase of
unemployment (2.11%).

This paper is joint work with Anne Kathrin Funk (KOF Swiss Economic
Institute, ETH Zurich)