Theoretical and Empirical Analyses of Wage Rigidity During Recession
| Project/Area Number |
25885033
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| Research Category |
Grant-in-Aid for Research Activity Start-up
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| Allocation Type | Single-year Grants |
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| Research Field |
Economic policy
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| Research Institution | Hitotsubashi University |
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Principal Investigator |
YOKOYAMA Izumi 一橋大学, 国際・公共政策大学院, 講師 (30712236)
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| Project Period (FY) |
2013-08-30 – 2015-03-31
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| Project Status |
Completed (Fiscal Year 2014)
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| Budget Amount *help |
¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
Fiscal Year 2014: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000)
Fiscal Year 2013: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
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| Keywords | 賃金硬直性 |
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| Outline of Final Research Achievements |
In this project, I implemented a theoretical and empirical analysis of the effect of performance-based layoffs on wage rigidity in the context of performance pay. In the model, it becomes optimal for firms to raise future regular pay to maintain workers' current efforts, which results in downwardly rigid regular pay under the threat of performance-based layoffs. Furthermore, it becomes optimal for firms to base wages less on workers' performance during recessions due to the lower value of productivity. Consequently, wages during recessions also become "rigid" (inflexible) with respect to performance. The Japanese panel dataset supported these theoretical implications.
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Report
(3 results)
Research Products
(18 results)
