Downward Nominal Wage Rigidity and Gender

We test whether there are gender differences in downward rigidity, using Kahn's histogram‐location method and longitudinal registry data on all formally employed persons from the Estonian Tax and Customs Board. The results show that women resist pay cuts less than men. Also, in circumstances of increasing unemployment women's opposition to pay cuts decreases substantially, whereas men's attitudes towards pay cuts are not significantly affected by labour market conditions.