A Behavioral Explanation for Nominal Wage Rigidity During the Great Depression

A Behavioral Explanation for Nominal Wage Rigidity During the Great Depression

Nominal wages in manufacturing were left unchanged by the large decline in nominal demand that marked the first two years of the Great Depression. This rigidity in nominal wages is explained using the tools of the behavioral theory of the firm. The emphasis is on the reasons firms changed their deci...

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Veröffentlicht in:The Quarterly journal of economics 1989-11, Vol.104 (4), p.719-735
1. Verfasser: O Brien, Anthony Patrick
Format: Artikel
Sprache:eng
Schlagworte:
Business conditions
Business structures
Economic depression
Economic depressions
Economic theory
Effects
Great Depression
Labor markets
Manufacturing
Nominal
Nominal rigidities
Nominal wages
Real wages
Recessions
Steels
Studies
Wage rate
Wage rates
Wages
Wages & salaries
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Beschreibung
Zusammenfassung:Nominal wages in manufacturing were left unchanged by the large decline in nominal demand that marked the first two years of the Great Depression. This rigidity in nominal wages is explained using the tools of the behavioral theory of the firm. The emphasis is on the reasons firms changed their decision rules linking fluctuations in final sales to changes in nominal wages.
ISSN:0033-5533
1531-4650
DOI:10.2307/2937864