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 …

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 …

This paper studies variation in individual labor income over time using a panel vector autoregression (PVAR) in income … from the Panel Study of Income Dynamics (PSID). I find that innovations in the wage rate and work hours (conditional on …