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IZA Journal of European Labor Studies

Table 4 Estimates of downward nominal and real wage rigidity for natives and immigrants in Portugal

From: Nominal and real wage rigidity: Does nationality matter?

Total sample

2003

2004

2005

2006

2007

2008

 

2003-2008

Average empirical wage change

4.3

4.2

4.3

4.1

4.6

4.9

 

4.4

Average notional wage change

2.3

1.7

2.0

1.5

2.6

2.6

 

2.1

Expected inflation rate

2.8

2.7

2.5

2.4

2.4

2.3

 

2.5

Average wage sweep-up, from:

2.0

2.5

2.2

2.6

2.1

2.3

 

2.3

Nominal wage rigidity

1.1

0.9

1.1

1.1

1.0

0.9

 

1.0

Real and institutional wage rigidity

1.0

1.6

1.2

1.5

1.1

1.4

 

1.3

Nominal wage rigidity measure

45.8

42.7

48.6

50.6

48.0

47.1

 

47.1

Real wage rigidity measure

16.9

28.5

22.4

30.8

0.0

19.5

 

19.7

Number of observations

171,270

169,835

173,582

173,903

173,408

144,911

 

–

Natives

2003

2004

2005

2006

2007

2008

 

2003-2008

Average empirical wage change

4.3

4.2

4.3

4.1

4.6

4.9

 

4.4

Average notional wage change

2.3

2.0

2.0

1.5

2.5

2.6

 

2.2

Expected inflation rate

2.9

2.8

2.5

2.4

2.4

2.3

 

2.5

Average wage sweep-up, from:

2.0

2.2

2.2

2.6

2.1

2.3

 

2.2

Nominal wage rigidity

1.1

1.0

1.0

1.1

1.0

0.9

 

1.0

Real and institutional wage rigidity

1.0

1.2

1.2

1.5

1.1

1.4

 

1.2

Nominal wage rigidity measure

46.0

45.6

48.2

50.4

48.3

47.2

 

47.6

Real wage rigidity measure

15.8

19.6

22.4

30.5

0.2

19.9

 

18.1

Number of observations

163,597

161,802

165,205

165,593

165,157

138,673

 

–

Immigrants

2003

2004

2005

2006

2007

2008

 

2003-2008

Average empirical wage change

4.5

4.3

4.7

4.6

5.3

5.5

 

4.8

Average notional wage change

1.7

-0.1

1.9

1.1

2.7

2.8

 

1.7

Expected inflation rate

2.8

2.5

2.5

2.4

2.4

2.3

 

2.5

Average wage sweep-up, from:

2.8

4.3

2.8

3.5

2.6

2.7

 

3.1

Nominal wage rigidity

1.1

1.5

1.2

1.4

1.0

0.9

 

1.2

Real and institutional wage rigidity

1.8

2.8

1.6

2.1

1.6

1.7

 

1.9

Nominal wage rigidity measure

43.3

53.9

49.1

54.9

47.6

43.8

 

48.8

Real wage rigidity measure

31.9

34.9

25.2

31.2

0.4

13.0

 

22.7

Number of observations

76,727

80,329

83,769

83,102

82,510

62,374

 

–

  1. Notes: All samples include only workers who stayed for at least two consecutive years in the same firm (job stayers). In the case of the total and natives samples, the number of observations in each year refers to a 10 percent random sample that was selected from the respective samples of job stayers for estimating the rigidity measures. In the case of immigrants, the number observations refers to the total sample of job stayers.
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