06d-Elsby, Michael W. L.

and Gary Solon (2019), "How Prevalent Is Downward Rigidity

in Nominal Wages? International Evidence from Payroll Records and Pay Slips",
Men", Journal of Economic Perspectives, 33(3), 185-201,
https://doi.org/10.1257/jep.33.3.185.
Alternative outline by Pathorn Jitjeankhan, 14 Sep 2021

0. Untitled introduction
1. Some Modern Perspectives on the Economics of Downward Wage Rigidity
2. Evidence from Employer Payroll Records and Pay Slips
2a. Great Britain
Table 1 Percentages of Job Stayers Receiving Year-to-Year Nominal Wage Cuts and Freezes
2b. United States
2c. Evidence from Other Countries
2d. Some Nuances
Figure 1 Percentages of Job Stayers Receiving Year-to-Year Nominal Wage Cuts as a
Function of Inflation
3. Summary and Discussion

Summary paragraphs:

This paper begins with the explanation about the downward rigidity in nominal wages.
And there is an assumption about it from John Maynard Keynes who said that downward rigidity
in nominal wages can not be cut and the inefficient layoffs into unemployment are the result.
From this assumption, it could be said that the downward rigidity in nominal wages is elusive.
Nevertheless, The developments in economic thinking from p. 188 and 189 argue that the labor
market is much more complex than the model presented in Keynes assumption.

The support data is the finding of recent evidence based on the reports of job stayers
which were obtained from household surveys and the gathered of some countries. It presents that
the nominal wages cut and also the wages freeze are quite common. Hence, a clear assessment of
the empirical basis for downward nominal rigidity has proved elusive because of the difficulty of
obtaining reliable estimates of the incidence of nominal wage change (p.186). From all of the
contexts above, we can conclude that the nominal wages cut and stickiness normally exist and
Keynes's assumption should be reconsidered.