Cutting Wages Is Hard to Do: Why That’s Bad for Unemployment

September 29, 2014 by OSYB Staff

She made passing mention of an idea only an economist could love: “downward nominal wage rigidity.” In plain English, that means it’s hard for any company to cut pay, even in a recession. Economists sometimes call this “wage stickiness.” Depending on your brand of economics, stickiness either makes no sense, or it’s a significant.” Read more here.