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Downward Nominal Wage Rigidity in Europe - An Analysis of European Micro Data from the ECHP 1994-2001

Knoppik, Christoph ; Beissinger, Thomas



Abstract

This paper substantially extends the available evidence on downward nominal wage rigidity in the European Union (EU) and the Euro Area. We develop an econometric multi-country model based on Kahn’s (Am Econ Rev 87(5):993–1008, 1997) histogram-location approach and apply it to employee micro data from the European Community Household Panel for 12 of the EU’s member states. Our estimates for the ...

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