sticky-wage theory
n.— «The reason is something called the sticky-wage theory. Economists have long been puzzled by the fact that most businesses simply will not cut their workers’ pay, even in a downturn. Businesses routinely lay off 10 percent of their workers to cut costs. They almost never cut pay by 10 percent across the board.» —“Finding Good News in Falling Prices” by David Leonhardt New York Times Dec. 17, 2008. (source: Double-Tongued Dictionary)
Further reading
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