We present evidence on the frequency of nominal wage adjustment
using SIPP data adjusted for measurement error. The SIPP is a
representative sample of the US population. Our main results are:
(i) The average quarterly probability of a nominal wage change
is between 21.1 and 26.6 percent, depending on the assumptions
used. (ii) Wage changes are much more likely when workers change
jobs. (iii) The frequency of wage adjustment does not display
significant seasonal patterns. (iv) The hazard of a nominal wage
change first increases and then decreases, with a peak at 12 months.
"Some Evidence on the Importance of Sticky Wages."
American Economic Journal: Macroeconomics,
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
Business Fluctuations; Cycles
Wage Level and Structure; Wage Differentials