Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248708 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
eabh Papers No. 21-01
Publisher: 
The European Association for Banking and Financial History (EABH), Frankfurt a. M.
Abstract: 
How sticky were wages during the Great Depression? Although classic accounts emphasize the importance of nominal rigidity in amplifying deflationary shocks, the evidence is limited. In this paper, I calculate the degree of nominal wage rigidity in the United Kingdom between the wars using new granular data covering millions of wages. I find that nominal wages were more flexible downwards than in most modern economies, but that the frequency and magnitude of wage cuts were too low to fully offset deflation.
Subjects: 
Great Depression
Interwar Britain
Nominal Rigidity
JEL: 
E30
N14
Document Type: 
Working Paper

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