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Economic Commentary

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?

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit clevelandfed.org for updates.

Suggested Citation

Craig, Ben R. 1995. “Are Wages Inflexible?” Federal Reserve Bank of Cleveland, Economic Commentary 4/1/1995.