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Replication data for: Nominal Wage Rigidity in Village Labor Markets

Version
1
Resource Type
Dataset
Creator
  • Kaur, Supreet
Publication Date
2019-10-01
Description
  • Abstract

    This paper develops a new approach to test for downward wage rigidity by examining transitory shocks to labor demand (i.e., rainfall) across 600 Indian districts. Nominal wages rise during positive shocks but do not fall during droughts. In addition, transitory positive shocks generate ratcheting: after they have dissipated, wages do not adjust back down. Ratcheting reduces employment by 9 percent, indicating that rigidities distort employment levels. Inflation, which is unaffected by local rainfall, enables downward real wage adjustments—offering causal evidence for its labor market effects. Surveys suggest that individuals believe nominal wage cuts are unfair and lead to effort reductions.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/aer.20141625 (Text)
Publications
  • Kaur, Supreet. “Nominal Wage Rigidity in Village Labor Markets.” American Economic Review 109, no. 10 (October 1, 2019): 3585–3616. https://doi.org/10.1257/aer.20141625.
    • ID: 10.1257/aer.20141625 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-06

Kaur, Supreet (2019): Replication data for: Nominal Wage Rigidity in Village Labor Markets. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116163V1