Overview

wage rigidity


Show Summary Details

Quick Reference

The tendency of wage rates to be ‘sticky’, and not to adjust so as to clear the market in the short run. Wages may be rigid because of long-term contracts. Alternatively, if wage rates are decided by collective bargaining, neither side may be keen to disturb an agreement which cost much effort to reach.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.