of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working … persistently affected, but the penalty on the hourly wage (and earnings) increases with experience, and attains roughly -6% ten …

This paper provides a model that can account for the almost uniform staggering of wage contracts in some countries as … ; strategic substitutability ; wage contracts ; contract duration …

Empirical and institutional evidence finds considerable time variation in the degree of wage indexation to past … build a DSGE model with endogenous wage indexation in which utility maximizing workers select a wage indexation rule in … aggregate demand shocks dominate output fluctuations. The model's equilibrium wage setting can explain the time variation in …

Membership in a monetary union implies stronger incentives for nominal wage flexibility in the form of wage indexation …-indexation to an indexation equilibrium. But more wage flexibility is only an imperfect substitute for an own monetary policy. It is … possible that an increase in wage flexibility is welfare-decreasing because of the accompanying rise in price variability. The …

markups and output in the data. Consistent with the model’s precautionary wage setting, we find that wage markups increase …

We present a new theory of wage adjustment, based on worker loss aversion. In line with prospect theory, the workers …' perceived utility losses from wage decreases are weighted more heavily than the perceived utility gains from wage increases of … equal magnitude. Wage changes are evaluated relative to an endogenous reference wage, which depends on the workers' rational …