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Are Wages Inflexible?


How often does an average worker's hourly wage change? Do employees and employers avoid wage cuts? When wage changes occur, do they tend to come in gradual, small adjustments or in the form of a single large increase? Finally, do pay cuts follow the same pattern as pay raises?

How often does an average worker's hourly wage change? Do employees and employers avoid wage cuts? When wage changes occur, do they tend to come in gradual, small adjustments or in the form of a single large increase? Finally, do pay cuts follow the same pattern as pay raises?


Suggested citation: Craig, Ben, 1995. "Are Wages Inflexible?" Federal Reserve Bank of Cleveland, Economic Commentary, 04.01.1995.

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