In this paper we introduce reciprocity in labor relations and government sector to in- vestigate how well the real wage … employment rate, are not found to be quantitatively important for wage dynamics. Overall, the model with reciprocity and fiscal …

such a mechanism can quantitatively account for the degree of real wage rigidity in the Bulgarian labor markets, as …

In this paper we introduce reciprocity in labor relations and government sector to investigate how well the real wage …-shirking type that empha- size the importance of aggregate labor market conditions as the main determinant in wage setting, e … be quantitatively important for wage dynamics. Overall, the model with reciprocity and fiscal policy performs well vis …

We analyze to what extent skill heterogeneity in the labor market with different wage formation mechanisms can explain …

RBC models with search unemployment and wage renegotiation generate too much wage volatility and too stable … actual economies by imposing full real wage rigidity. We use a similar model but with Calvo wage contracts. The models with … full wage flexibility or full wage rigidity are obtained as particular cases. We show that a contract length of about six …

vacancies and unemployment. The modifications include strategic wage bargaining (Hall and Milgrom, 2006) and convex labor … show that strategic wage bargaining increases the volatility of vacancies and unemployment enormously. Second, the …