The book "Why Wages Don't Fall During a Recession" by Truman F. Bewley explores the mechanisms that prevent wages from falling during economic downturns. It delves into various aspects of labor economics, including methods, time and location, morale, company risk aversion, internal and external pay structures, the shirking theory, the pay of new hires in the primary sector, raises, resistance to pay reduction, experiences with pay reduction, layoffs, severance benefits, hiring, voluntary turnover, the secondary sector, the unemployed, information, wage rigidity, and labor negotiations. The book also examines existing theories and provides remarks on them, offering insights into the future of wage dynamics in economic recessions.The book "Why Wages Don't Fall During a Recession" by Truman F. Bewley explores the mechanisms that prevent wages from falling during economic downturns. It delves into various aspects of labor economics, including methods, time and location, morale, company risk aversion, internal and external pay structures, the shirking theory, the pay of new hires in the primary sector, raises, resistance to pay reduction, experiences with pay reduction, layoffs, severance benefits, hiring, voluntary turnover, the secondary sector, the unemployed, information, wage rigidity, and labor negotiations. The book also examines existing theories and provides remarks on them, offering insights into the future of wage dynamics in economic recessions.