@techreport{NBERw3365,
 title = "Fear, Unemployment and Pay Flexibility",
 author = "David G. Blanchflower",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3365",
 year = "1991",
 month = "October",
 URL = "http://www.nber.org/papers/w3365",
 abstract = {The paper uses newly available cross-section data to study wage determination in the United Kingdom in the 1980s. The results are contrasted with those from a comparable sample from the US from 1977-1988. 
1) Fear of unemployment substantially depresses pay in both countries.
2) There is some evidence of a wage ratchet in the UK whereby rates of pay are more flexible upwards than downwards.
3) The unemployment elasticity of pay averages -0.1 in the UK and apparently zero in the US.
4) Wages are almost twice as flexible in non-union and small workplaces in the UK.},
}