countries. The paper begins by surveying earlier estimates of relative productivity and unit labor cost levels and evaluating … productivity translated into dollars at purchasing power parity exchange rates. These estimates are compared with results obtained …

the special case in which prices are sticky and wages are perfectly flexible. When the model is calibrated to exhibit an …

This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a …, technical change, and a productivity slowdown. We derive the consequences for the skilled-to unskilled wage gap, unemployment …

nominal wages. This finding contrasts with results obtained using standard sticky-wage models, which employ Walrasian labor … tolerate large fluctuations in real wages that would otherwise not be tolerated in a standard model with Walrasian labor … markets; as a result, any concern for stabilizing nominal wages does not translate into a concern for stabilizing nominal …

utility calculations. There is a stabilization problem because there are one-period nominal contracts for wages, or prices, or … crucially on whether there are also price contracts. For example, if labor supply is relatively inelastic, for productivity …