You are not currently logged in.
Access JSTOR through your library or other institution:
A Shred of Evidence on Theories of Wage Stickiness
Alan S. Blinder and Don H. Choi
The Quarterly Journal of Economics
Vol. 105, No. 4 (Nov., 1990), pp. 1003-1015
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/2937882
Page Count: 13
You can always find the topics here!Topics: Wages, Economic theory, Fairness, Wage stickiness, Unemployment, Business structures, Economic inflation, Wage theories, Keynesianism, Economics
Were these topics helpful?See somethings inaccurate? Let us know!
Select the topics that are inaccurate.
Preview not available
A small interview survey was undertaken to see how actual wage-setters would react to the central ideas of several economic theories of wage stickiness. Wage cuts were surprisingly prevalent in recent years, despite the booming economy. The strongest finding was that managers believe that perceptions of fairness play a major motivational role in labor markets and that a "fair" wage policy is a good deal more complicated than simply not cutting wages. We also found substantial evidence for money illusion and against the adverse-selection version of the efficiency wage model.
The Quarterly Journal of Economics © 1990 Oxford University Press