TY  - JOUR
AU  - Blinder,Alan S.
AU  - Choi,Don H.
TI  - A Shred of Evidence on Theories of Wage Stickiness
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3105
PY  - 1989
Y2  - September 1989
UR  - http://www.nber.org/papers/w3105
L1  - http://www.nber.org/papers/w3105.pdf
N1  - Author contact info:
Alan S. Blinder
Department of Economics
Princeton University
Princeton, NJ 08544-1021
Tel: 609/258-3358
Fax: 609/258-5398
E-Mail: blinder@princeton.edu
AB  - 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.
ER  -