Wage changes worldwide reveal surprising patterns, impacting workers globally.
The International Wage Flexibility Project studied how wages change for workers in different countries. They looked at data from 31 sets in 16 countries and found that wage changes vary a lot among workers. Wages don't follow a normal pattern and tend to cluster around the middle with some extreme values. Most countries have wage distributions that are not symmetrical below the middle. This means that wages can be sticky, both in terms of not going down in nominal terms and not adjusting for inflation. The presence of labor unions in wage negotiations affects how rigid wages are in different countries.