Composition bias in aggregate wages is often a scapegoat for the apparent unresponsiveness of wages over the cycle … effect of composition bias. This is because the assignment of fixed weights used to keep the composition of the work force … cyclically less responsive over the cycle and no evidence of 'counter-cyclical' composition bias. …

policy shocks. Our analysis suggests several broad conclusions: (i) in the data, composition bias plays a modest but …

Composition bias in aggregate wages is often a scapegoat for the apparent unresponsiveness of wages over the cycle … effect of composition bias. This is because the assignment of fixed weights used to keep the composition of the work force … cyclically less responsive over the cycle and no evidence of ‘counter-cyclical’ composition bias. …