Sources of Payments Practices Rigidity -
Sobre o paper:
The paper studies the joint determination of payment practices between firms and employees (i. e. wage payment frequencies and wage payment dates) during high inflation. The framework developed in the paper incorporates the following sources of payment practices rigidities: a) interaction between optimal payment period decisions and portfolio decisions of firms and employees; b) the occurrence of Pareto inefficiencies in the bargaining process between firms and employees due to wage regulation; c) the imposition of nominal wage floors that are invariant to the payment date chosen; d) integer restrictions on payment frequencies. The empirical part of the paper assesses the relevance of these sources of rigidity in payments practices using Brazilian micro data.
