Martins, Pedro S.; Solon, Gary; Thomas, Jonathan P. - In: American Economic Journal: Macroeconomics 4 (2012) 4, pp. 36-55
Rigidity in real hiring wages plays a crucial role in some recent macroeconomic models. But are hiring wages really so noncyclical? We propose using employer/employee longitudinal data to track the cyclical variation in the wages paid to workers newly hired into specific entry jobs. Illustrating...