Firms hiring fresh graduates face uncertainty on the future productivity of workers. Intuitively,one expects starting wages to reflect this. Formal analysis supports the intuition...

A major criticism against staggered nominal contracts is that they give rise to the so called"persistency puzzle" – although they generate price inertia, they cannot account for thestylised fact of inflation persistence. It is thus commonly asserted that, in the context of thenew Phillips curve...