Employment Effects Of Nominal-Wage Rigidity: An Examination Using Wage-Settlements Data Staff Working Paper 2000-14 Umar Faruqui The argument advocating a moderate level of inflation based on the downward nominal-wage rigidity (DNWR) hypothesis rests on three factors: its presence, extent, and negative impact in the labour market. This paper focuses on the employment effect of DNWR. Content Type(s): Staff research, Staff working papers Topic(s): Labour markets JEL Code(s): C, C2, C23, J, J2, J23, J3, J30