9780674952416
Why Wages Don't Fall During a Recession
Truman F. Bewley
ISBN 13: 9780674952416
Publisher: Harvard Univ Pr
Publication Date: 2000
Binding: Hardcover
Your Satisfaction is Guaranteed:
Although economists have posited many theories to account for wage rigidity, none is satisfactory. Eschewing 'top-down' theorizing, Truman Bewley explored the puzzle by interviewing over 300 business executives, labor leaders, and recruiters/advisors to the unemployed during the recession of the early '90s. He discovered that executives were reluctant to cut wages for fear of hurting morale, which they believed was critical in gaining the cooperation of their employees.
Review:
"Bewley mounts a passionate challenge to conventional economic methods and accounts, and he provides a great deal of real-world support for what behavioral economists have been urging."
Cass R. Sunstein, New Republic, 07/07/2000
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