ScholarLens Back to search
2008•RePEc: Research Papers in EconomicsRequires access

A SECTORAL PERSPECTIVE ON NOMINAL AND REAL WAGE RIGIDITY IN PORTUGAL

Cláudia Duarte, James Tobin

Open publisher page 8 citations

Abstract

Wage rigidity (nominal and real) is associated with labour market frictions that prevent the normal adjustment of wages to labour demand. Firms’ ability to accommodate to disturbances in the demand for their products is limited by wage rigidity. As opposed to wage flexibility, a rigid wage framework may lead to an adjustment that generates unemployment. Wage rigidity in the labour market is often pointed out, with varying emphasis, as one of the reasons that contribute to explain the higher level of unemployment in the European Union vis-a-vis the Unites States (Solow, 2000).

Open-access reader

About this research paper

What this paper is about

Wage rigidity (nominal and real) is associated with labour market frictions that prevent the normal adjustment of wages to labour demand. Firms’ ability to accommodate to disturbances in the demand for their products is limited by wage rigidity. As opposed to wage flexibility, a rigid wage framework may lead to an adjustment that generates unemployment. Wage rigidity in the labour market is often pointed out, with varying emphasis, as one of the reasons that contribute to explain the higher level of unemployment in the European Union vis-a-vis the Unites States (Solow, 2000).

Why it matters

OpenAlex reports 8 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Wage rigidity (nominal and real) is associated with labour market frictions that prevent the normal adjustment of wages to labour demand. Firms’ ability to accommodate to disturbances in the demand for their products is limited by wage rigidity. As opposed to wage flexibility, a rigid wage framework may lead to an adjustment that generates unemployment. Wage rigidity in the labour market is often pointed out, with varying emphasis, as one of the reasons that contribute to explain the higher level of unemployment in the European Union vis-a-vis the Unites States (Solow, 2000).

Key concepts: Economics, Wage, Rigidity (electromagnetism), Unemployment, Efficiency wage, Flexibility (engineering), Labour economics, Full employment

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
A SECTORAL PERSPECTIVE ON NOMINAL AND REAL WAGE RIGIDITY IN PORTUGAL — Research Paper | ScholarLens