Abstract: This paper examines downwards nominal wage rigidity in the late 19th and early 20th centuries using personnel records from the Union Bank of Australia, the Victoria Railways (Australia), and Williams Deacon’s Bank (England). Although it was common for workers at these firms to receive a zero nominal increment, wage cuts were very rare, even in years of low or negative inflation. Turnover at these firms was extremely low and, thus, despite flexibility in the wages of incoming workers, did not offset the effects of individual-level wage rigidity. Consequently both real wage levels and increments moved counter-cyclically.

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