New York Times Death Spiral Watch (Gail Collins Department)
Real Wages of Construction Workers in England

Nominal Wage Rigidity in England in the Long Run

210A Labor Markets - NeoOffice Impress

Source: Jan de Vries 2/13/08 lecture, originally from Phelps-Brown and Sheila Hopkins (1956), "Seven Centuries of the Prices of Consumables, Compared with Builders' Wage- Rates," Economica 23:92 (November), pp. 296-314
  • Extraordinarily impressive nominal wage rigidity across long spans of history.
    • Beware, however: the "ancillary" terms of the wage contract could and did vary at a much higher frequency ("we can still only pay you three pence a day, but we'll add a piece of sausage and a mug of beer at lunchtime"--that sort of thing).
  • Neverthless, aside from 1932, 1921, and 1333, nominal wages simply do not fall. It doesn't happen.