The Variation in Wage Rigidity by Occupation and Union Status in the Us

This study estimates wage equations with data disaggregated by occupation and union status and it derives two measures of wage rigidity for each group of workers: the sensitivity of wages to unemployment and the speed with which wages respond to price inflation. The sensitivity of wages to an aggregate measure of unemployment was found to depend negatively on an occupation's skill level. In addition, union wages were more sensitive to unemployment than nonunion wages and responded less rapidly to price inflation. Copyright 1997 by Blackwell Publishing Ltd